Recovering from Disaster: How to Turn Around Your Trading Losses

Losing money http://www.financial-spread-betting.com/Lose-money.html 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.

Comments

1. I get sent signals from a company, only use them 15 minutes after they're received and the past 4 / 5 have made between a £25 / £30 loss.. :( I'm a student and this is clearing me out. The company posts pictures of others who are using the same signals and they make a nice profit everyday. Is it really because of that small delay in me playing the trade that is causing me these losses?!
2. Great advice. Chasing loses almost never works. "Managing yourself" is crucial. The stress and self-loathing from losses can punish a person's health. Been there! Thanks for the video.
3. most traders are impatient and greedy. they are the source of the so-called dumb money. they act like children who want to make money in a short time. trading is a business, so therefore you must have a business plan to engage in such activity. it's that simple---but NAWH!
4. most retail traders follow exactly what you preach and so many others just like you, still 95% of them loose money, so either 95% of them are dumb nuts or you are lying.....
5. Friday trade killed 50% of my account
6. Thanks Paul!
7. AGREE!!!  Friday trades ..!! I get killed on Fridays.
8. I agree; you should never initialise trades on Friday. I don't like the comment about not trading on your own though. It really puts my hopes down especially now that I feel more confident.