In January of last year, I had a 52% wipe-out on my entire trading account. It took me a few months to get it back, and then I managed to catapult from that low point and finish the year of '07 up by 435% . I guess it comes down to how strong do you believe in yourself and most importantly, your trading plan. PMA is also critical to your success. Best of luck in your trading.
You got it!!! I think the toughest part is overcoming the negative mind set that arises from such a situation. Its very easy to have negative expectations or just a fear based mentality after a big loss. Such projections will cloud your judgment and color situations. Its good to have a healthy amount of rational fear, that keeps you out of trouble, but if you become fearful of losing, trading can become impossible. The sooner you can put everything behind you and move forward with positive expectations the sooner you will be back on track. It really is amazing how quickly a change in mind set changes the direction of your trading. Of course you should evaluate your methods and make any appropriate changes, but dealing with the emotional baggage is most important.
Top traders don't have blowups. Pretenders do. Top traders have setbacks, they are the Top Trader because they know how to stop the loss before the setbacks become "Major". Top traders are seldom in the limelight, they have no reason to.
Even some of the best can screw up sometimes... Good book on the subject. Casual but good. http://www.amazon.com/When-Supertraders-Meet-Kryptonite-Collins/dp/0934380767
Top traders are few really and they don't have giant setbacks or blowups. Blowups and big f**k-ups are for dickheads. The lesson for losers is get out before you sink any more cash into something at which either you are reckless or if not you are just not an expert.
Exactly Right! Just about every successful trader has blown up and I'm no exception. I took a few days off and got back in the saddle and did exactly what got me to the point before the blowup. If you blew up take some time off and get your head straight. When you come back do exactly what you were doing before Domesday. If you're human you are prone to making a catastrophic error. Don't beat yourself up too much and then move one. In a couple of years you'll get a good laugh out of it.