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Avoid the Recovery Trap

Ameet

Increasing trade size after a loss can make the situation worse.

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  • Prop Firm BridgeOfficial

    Spot on. Increasing trade size after a loss is a classic psychological trap known as revenge trading or the Martingale fallacy, and it is one of the fastest ways to blow an account. When trading with a prop firm, managing risk and position sizing is critical because a single oversized trade can instantly breach your daily loss limit or trailing drawdown rule.

    • Stick to a fixed risk percentage per trade.

    • Step away from the screens after a consecutive loss to clear your head.

    How do you reset your mindset after taking a tough loss during a session? Drop your thoughts below!

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  • Alex Alexander

    yes martingale is trap and overtrading also

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