What to do first when you’ve suffered a huge FX loss and can’t recover
▼Details page for Sanson Hodou FX is here
https://www.gogojungle.co.jp/tools/indicators/65204?via=users_products
This is SEI from Trading Labo+.
Thank you always for viewing.
Today’s topic is "What you should do first when you suffer a huge loss in FX and can’t recover."
◆ Despair after a huge loss is something everyone experiences
I suffered a huge loss in FX.
The account balance dropped unbelievably. Or it became zero.
My head went blank. I couldn’t think of anything. I couldn’t do anything.
“Why did this happen...?”
I understand this despair painfully well.
Because I’ve had the same experience.
When you suffer a huge loss, you may feel isolated.
“I’m the only one who made such a mistake.”
“Maybe I’ll never recover.”
But, don’t worry.
You aren’t the only one who feels you can’t recover from a huge loss.
And there is certainly a way to recover.
1. First, distance yourself from FX
Right after a big loss, many people think like this.
“I have to make it back immediately.”
This mindset is the most dangerous.
Right after a big loss, you aren’t calm. Your judgment is impaired.
Continuing to trade in that state only increases losses.
The urge to “make back” is the most dangerous
I, too, was the same when I suffered a big loss.
I repeated reckless trades driven by the urge to “make it back now.”
As a result, losses swelled further, and I eventually lost 10 million yen and even went into debt.
Trying to catch up by rushing back leads to the worst outcomes.
Have the courage not to look at charts
That is why you should distance yourself from FX first.
Don’t look at charts. Don’t trade. Don’t think about the market.
Put a complete distance between you and it.
“But I might miss a chance.”
You might think so. But don’t worry.
There will be another market tomorrow. Next week, next month, there will always be opportunities.
There is no need to rush. First priority is to calm your mind.
2. Straighten your mind and body
Once you’ve distanced yourself from FX, the next thing is to restore your mind and body.
After a huge loss, many people’ minds and bodies are strained.
You may have trouble eating, sleeping, or feel unmotivated.
Don’t leave this state untreated.
Eat properly, sleep properly
This is obvious but the most important thing.
Recovery of the mind requires recovery of the body.
Even if it’s hard to eat, try to eat something nutritious little by little.
And make sure to sleep well.
If you can’t sleep, just lie down with your eyes closed.
Resting your body is important.
Clear your head with light exercise
If possible, do light exercise.
A walk, a jog, or stretches are all fine.
Moving your body clears your mind.
I walked every day after a big loss. I walked without thinking about anything.
That time gradually calmed my mind.
Make time to be with friends and family
Don’t shoulder this alone.
Make time to spend with friends and family.
You don’t need to talk about FX. Just being together helps.
Loneliness deepens despair.
Time with others can help save you.
3. Immerse yourself in hobbies and things you love
Once your mind and body have settled a bit, proceed to the next step.
Immerse yourself in hobbies and things you enjoy.
Look away from FX world
After a huge loss, it’s easy to fall into thinking “FX is everything.”
But the world is not just FX.
There are many other enjoyable things for you.
Watch your favorite movies
Listen to your favorite music
Read your favorite books
Play your favorite games
Play your favorite sports
Any of these can help. Look beyond FX.
Getting absorbed in something heals your heart
After a big loss, I immersed myself in basketball.
It’s a hobby I’ve pursued for almost 30 years. When I stood on the court, I could forget about trading.
Being absorbed in something heals your heart.
Surely you have something like that too.
Now is the time to value that time.
4. Time will heal
“There’s no way to recover from such a huge loss.”
You may feel that now.
But trust me.
Time will surely heal you.
Heal at your own pace without rushing
Today may be painful, but tomorrow will be a little better.
If tomorrow is painful, a week later you’ll be a little calmer.
If a week later is still painful, by one month you will be clearly changed.
Don’t rush. Recover slowly at your own pace.
Believe in yourself one week and one month later
When I suffered a huge loss, I thought “It’s over.”
But after a week, I became a little calmer.
After a month, I felt I could try again.
Time will surely heal you.
Your current despair will not last forever.
There will be an end.
Believe that and endure for now.
5. I also lost 10 million yen
Here I’ll honestly share my experience.
I lost 10 million yen trading.
And, in my haste to catch up, I increased losses and eventually went into debt.
Days when I thought I couldn’t recover.
Back then I truly believed “It’s over.”
Seeing the charts became scary. Just thinking about trading made my chest hurt.
Even meeting friends didn’t make me smile. I couldn’t be cheerful in front of my family.
I thought I could never recover.
But now I’ve recovered.
So, how am I now?
I’ve resumed trading and started making stable profits again.
That huge loss still hurts, but it’s what made me who I am today.
You can recover too.
If I could recover after losing 10 million yen, you can too.
Mental strength won’t be perfect, but knowing how to recover is important
“Will my mindset grow stronger?”
A common question.
Honestly, mindset won’t become perfect.
Even after a huge loss, continued losses cause anxiety. Large unrealized losses cause panic.
But there are things that can change.
That is, knowing how to recover.
If you’ve recovered once, when you fall again you can rise again.
No matter how many times you fall, you can rise again. That is mental strength.
6. What to do first when resuming FX
Your mind has calmed, and you think “I’ll try again.”
In that case, you may want to restart FX.
But don’t rush.
Proceed carefully by following the proper steps.
Don’t jump back into real trades suddenly
Never return to real trading abruptly.
Even if your mind has recovered, your trading instincts may be dull.
Please follow these steps first.
Step 1: calmly analyze past trades
Calmly analyze why you suffered a huge loss.
Now you should be able to review it calmly.
Why did you suffer a huge loss?
Where did you make wrong judgments?
What should you improve?
This analysis will help you grow.
Step 2: regain sense with a demo account
After the analysis, trade in a demo account.
Don’t use real money yet; first regain your senses.
Can you judge calmly? Can you follow rules? Can you avoid being emotional?
Check these.
Step 3: restart with a small amount
If the demo yields stable results, move to a small real account.
Don’t put a large amount at once.
Restart with an amount that won’t hurt if you lose it.
Even a small amount will move your emotions when real money is involved.
Check whether you can control this emotion.
And when you can consistently generate profits, gradually increase your funds.
Proceed slowly and carefully, one step at a time.
7. People who overcome huge losses become strong
Finally, a message for you.
People who overcome huge losses inevitably become stronger.
A treasure that only those who have experienced huge losses can gain
Huge losses are indeed painful.
However, this experience becomes your own asset.
You understand what is dangerous firsthand
You deeply understand the importance of risk management
You know the dangers of consecutive losses from experience
You have felt the consequences of trading emotionally
These insights can only be understood by those who have experienced a huge loss.
They are real-world knowledge that you cannot learn from textbooks.
There is far more to learn from failure than from success
From success you only gain confirmation of what works.
But from failure you can learn a lot of things.
“This method is no good.”
“This judgment is wrong.”
“This emotion is dangerous.”
Failure is the best teacher.
You are surely growing.
Because you lost a huge amount, you are growing surely.
You may not feel it now.
But when you overcome this experience, you will be a completely different person than before.
Stronger, wiser, and calmer as a trader.
Summary: Huge losses are painful. But they’re not the end
I suffered a huge loss in FX.
I understand that despair painfully well.
But this is not the end.
Things you can start today
First, distance yourself from FX
Don’t look at charts
Don’t trade
Put a complete distance between you
Straighten your mind and body
Eat well, sleep well
Engage in light exercise
Spend time with friends and family
Immerse yourself in hobbies or passions
Look beyond FX
Being absorbed in something heals the heart
Take time to slowly recover
Don’t rush
Believe in your future self after 1 week, after 1 month
Restart FX carefully
Analyze past trades
Regain sense with a demo account
Restart small
I also recovered from losing 10 million yen.
Therefore, you can surely recover too.
Even if it’s painful now, it’s okay.
Don’t rush. Recover at your own pace gradually.
You are not alone.
And this experience will surely become your asset.
Take your time and recover slowly.
◆ “Sansan Hodou FX” is perfect for the following people.
・People whose night shifts or irregular work limit their trading time
・Parents with children who can’t stay glued to charts
・Salarymen doing FX as a side business
・People who struggle with complex analysis and want to trade simply
・People who find it troublesome to look at dozens of indicators
・People who lack confidence in chart pattern judgments
・People who want to aim for big pips with little time
・People who prefer swing trading to scalping
・People who get tired by reacting to price moves
・People who hesitate on stop-loss levels and end up holding a salty position
・People who have become data-collectors of know-how (no plan)
・People who buy signal tools but can’t win
◆ Join Sansan Hodou FX here ↓ ↓ ↓
https://www.gogojungle.co.jp/tools/indicators/65204?via=users_products