What to do when you’ve lost all your money
So you’ve lost all your money huh? It could have happened to you in a myriad of ways. You could have forgotten your stop loss or input the wrong numbers for it. You could have traded during certain events that rocket in the market in a direction that you didn’t plan for. You could have stayed in a trade way longer than you had any right to because you were completely sure that things are going to turn around and that there was going to be retracement in your favor. Or maybe you just went on a destructive round of Revenge Trading. Either way, the money that you set aside to invest in your forex trading account is all gone now.
Well, I’m here to tell you that it’s okay. Well, not okay in the sense that you’ve lost your funds and that’s pretty bad. But okay in the sense that you’re not a minority that would be considered foolish in their actions. I can’t reliably put a percentage to this but I can tell you that a significant amount of people have lost all their invested money in the trading account. More than you know. A large set of these people are beginners who probably didn’t spend enough time with the demo trading or perhaps never did any demo trading at all. And even if they did, being content with demo trading progress doesn’t necessarily mean that you’re never going to make a mistake in your entire trading career. And maybe it wasn’t even a mistake; maybe you just had terrible, terrible luck. Whether you were reckless, unlucky or unprepared, the point is that you’re not alone.
“But what’s solace is that?!” you ask me. Its solace in the fact that you aren’t at the bottom of a minority with a situation barely anyone has gone through. Because so many other people went through the same thing you went through, you have to realize that a lot of those same people eventually got back on their feet and tried again. (As long as you didn’t invest anywhere close to all or all your money in this one trading account…which would be crazy on a new level) What happens now is that you focus on what type of person you’ll be when you try again. Some people change the currencies they try to trade with. Some people stop using their normal trading strategies and indicators in search of new ones. Some even change the type of trader that they are. A common example of that last example is a change from being a scalper to a swing trader. It all depends on what happened that guzzled the money out of your account and where you are in your trading journey. Forex is easy to make mistakes in because the environment that promises the rewards in the format that it does causes us to more often than not jump at chances we shouldn’t take or adopt behaviors we shouldn’t have. Many have suffered because of that; of course, that also includes me. So you shouldn’t think that you’re the worst type of trader or there’s no hope for someone like you in Forex or anything like that. All you need to know is that if you get back on your feet you better have a game plan or else the same thing might happen again possibly in the same way. Now THAT would be discouraging.