Revenge trading refers to the act of entering trades with the sole intention of recouping losses from previous unsuccessful trades. It's driven by emotions such as frustration, anger, or a desire to regain lost profits quickly. Revenge trading often deviates from a trader's strategy and risk management rules, leading to impulsive and irrational decision-making. This behavior can exacerbate losses, as traders may increase position sizes or take on excessive risk to chase profits. Ultimately, revenge trading is detrimental to long-term success in trading, as it ignores disciplined and objective analysis in favor of emotional reactions to past losses.