Assalamu Alaikum wa Rahmatullahi wa Barakatuh

I hope all brothers are doing well. May Allah grant success to everyone.

When a trader enters a trade and it closes in loss—whether the stop loss is hit or the trader exits manually—one very common human psychology kicks in:

“I must recover this loss immediately.”

Because of this mindset, the very next trade is usually what we call a Revenge Trade.

Some people, especially those who consider themselves more educated or smart, prefer to call it a Recovery Trade 😄.

Now let’s talk about the common methods traders use in the market to try to recover their losses:

1) Using the Same Lot Size

Often, after a losing trade, the next trade is taken with the same lot size.

If your risk–reward is 1:1, then hitting take profit will recover the previous loss. After that, the next trade is taken for profit.

2) Taking Every Trade at 1:2 Risk–Reward

With this approach, one winning trade can recover the loss of two losing trades and still leave some profit.

The problem is that the take profit is usually far away and the stop loss is very close, which increases the chances of SL getting hit.

Many times, the market first hits your SL and then moves in your original direction.

3) Martingale Strategy

In this method, if the first trade is $1000, the recovery trade is taken with $2000.

If the second trade wins, both the loss and profit are recovered.

But if the second trade also goes into loss, the third trade must be $4000, which puts the entire account at serious risk.

This method is extremely dangerous.

4) Taking Every Trade at 2:1

Here, the take profit is closer than the stop loss, so TP is hit more frequently.

However, if the market is not in your favor and you hit 2 or 3 consecutive stop losses, you may need 6 to 8 winning trades just to recover the loss.

Summary

In 1:2, the chances of SL getting hit are higher

In 2:1, the chances of TP getting hit are higher

But if the market does not support you, both recovery systems can fail.

5) Percentage-Based Recovery

In this method, if one trade results in a 1% loss, the next trade aims for 2% profit to recover it—usually by using higher leverage on the same amount.

This approach is also not very safe, especially for beginners.

Final Note

In the end, we will also share our own method,

but before that, we want to know your approach.

👉 Please share in the discussion group:

Which method do you use to recover your trading losses?

Looking forward to your thoughts 👊📊