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Losing money www.financial-s... Paul Wallace a forex trader and mentor talks about bad trading experiences. Let's take the case of a trader who is going through a rough patch or who has already lost substantial monies. The first thing you should do is to stop trading. Step back, take timeout, organise your thoughts and then proceed. Look back at the 4M's - are you managing markets, method, managing money properly, managing yourself? Never trade without stops and never risk more than a portion of your account on a single trade. Keep good records of your trading activity including a trading journal of how you're actually trading. As Alexander Elder said 'If you show me good records, I'll show you a good trader'. For instance in my case I identified that 50% of all my bad trades were Friday trades. Trading itself as an activity can be immensely lonely so make sure you have the right support structure, make sure that your friends and family are there to support you.
Is it possible to recover your account after catastrophic financial loss? Yes, and I've seen traders recover - I've seen traders losing five-figure sums in a single day and its really about how you respond. It might take substantial time to recover losses that you've suffered in a single foolish session though but that is part of your journey as a trader.