Why Traders Feel the Need to “Make Back” Yesterday’s Loss

Why Traders Feel the Need to “Make Back” Yesterday’s Loss

Trading psychology showing urge to recover yesterday's trading loss

One losing day often feels heavier than it should. Even if the loss was within plan, the emotional weight carries into the next session.

Traders wake up thinking, “I need to recover what I lost yesterday.”

This mindset quietly shifts focus from execution to outcome.

Why the Brain Wants Immediate Recovery

Losses create psychological imbalance. The mind seeks symmetry.

Recovering quickly feels like restoring control. Waiting feels uncomfortable.

This urgency is not strategic. It is emotional.

How Recovery Mindset Changes Behavior

When traders enter a session with recovery intent, they often:

  • Increase position size slightly
  • Take setups earlier than usual
  • Trade more frequently

These changes are subtle, but they distort discipline.

The Link With Loss Aversion

Behavioural finance explains this through loss aversion, where losses feel more intense than gains of equal size.

Research summaries such as those discussed on Investopedia describe how this bias influences decision-making.

The desire to recover quickly becomes stronger than the desire to follow process.

Why This Leads to Compounding Damage

A structured loss is manageable. A revenge-driven loss often expands.

This pattern overlaps with small rule violations and rushing to recover losses .

Emotional carryover increases exposure to further mistakes.

Professionals Reset Between Sessions

Experienced traders treat each session independently.

Yesterday’s result does not change today’s structure. Position size remains fixed. Rules remain unchanged.

Emotional residue is acknowledged, but not acted upon.

Reflection

Ask yourself: Am I trading today’s setup, or am I trading yesterday’s emotion?

How to Apply This

  • Do not increase size after a loss.
  • Review yesterday’s trade before the session begins.
  • Define today’s plan without referencing previous results.

Conclusion

The urge to “make back” losses is natural, but it shifts attention away from discipline.

Trading improves when sessions are independent. Process, not emotional balance, restores long-term consistency.

Disclaimer: Trading in the stock market involves risk. This article is for educational purposes only and does not provide financial or investment advice. Always trade according to your own research, risk tolerance, and trading plan.