I know I’ve given you the same tips over and over again. To deal with your losses in the market, set aside your emotions and don’t panic. Today, let’s look at this problem from a different angle. How do you deal with losses without losing further? What’s a different approach to recovery?
I’ve experienced a lot of ups and downs not just in the stock market but in other market exchanges as well. Although I haven’t discovered the perfect formula for recovery (I’m not certain if there is), I’ve used the most effective ones. Let me share them with you.
Rest from trading
If you’re from trading and you lost a huge portion of your money, I suggest you take a break. Rest from trading. Don’t let it consume what’s left of you. You deserve to think about good things other than trading. Uninstall your trading app if you must. Log out of your trading platforms. Set a vacation with your family or friends. Go and play your video games. Let time pass so you can get back from your downfall. It’s never the end of your trading journey. All you need is another set of energy and courage to lift you up.
Plan your strategies when you go back
While you are taking a break, allocate time to rethink your trading plans. Reevaluate your strategies. What went wrong? What could have been better? What else should have you done to make things right? These are key points to improve your strategies while you are taking a break. And when you modify your strategies, see to it that you are going to stick with the changes. Don’t betray yourself. Remember that you have worked for your recovery to be successful. Don’t waste it.
Don’t do revenge trading
One of the strategies adopted by investors when they lose in the market is revenge trading. This is not good no matter where you are standing, Revenge trading is not the answer for recovery. This will just make you lose more money. What usually happens here is that you risk more in the hopes to recover more. So, instead of just investing $100 based on your trading strategy, you double your investment in a volatile stock so that the return is faster and bigger. If you want to deal with your market losses effectively, avoid doing this.
Protect your mental health
I came across a news on Facebook where one trader took his own life because of he lost around 1 million in forex. Though the amount is really big, this doesn’t mean you can’t recover. Another thing that you should do to deal with your market losses is to protect your mental health. You need to be stable when trading. You can’t let your failures get into you. So, as you take a break, think about your mental health. Don’t sacrifice your sanity for the sake of money. If you are stable mentally, you will be able to think more effective strategies.