I have been bitten by my horse, and he was out to hurt--he knocked me to the ground, but it was not a dominance fight, because he immediately scooted away from me out of reach. He was saying something larger, but that's another topic altogether. Point is, if you're really bitten you won't be able to correct the behavior--nipping however gets a hard smack on the mouth. Once, and then its over. Just like every other behavior you correct, the reaction is immediate and quick and then I move on. Its not so much what you do (bite, yell, smack, etc) as when you do it that makes it effective.
After that bite, I did get up, brush myself off and put him in the roundpen to see if there was any larger respect problem, but he was perfect. That is something you also want to consider when correcting; is it behavior related, or is your horse telling you something?
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