With a 400% gain. Let's say you had 10, after your 80% loss only 2 is left. 2......+ 2 (100%) +2 (100%) +2 (100%) +2 (100%) = 400% gain = 8+2 = 10 you started with. That much you need from whatever is left now to break even.
That mindset will just kill you! Learn to deal with it. The mindset was wrong to lose 80% in such a short amount of time, let a lone over a prolonged duration. The point is, YOU DO NOT think about making 400% GAINS, but you THINK ABOUT LOSING 80%!!! Think defensively as it isn't what you make, but what YOU DONT LOSE !!! USE STOPS, 3%, 4%, 5%, 10%, but use a FKING STOP LOSS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You will in times have events like what we've seen, so DEAL WITH IT. Exposure = risk = anything possible. I still have no idea how you would lose 80% just like that.
What an irresponsible comment. The guy loses 80% and you recommended Forex. You must be a broker. Happy to take what pennies he has left.
By not selling. I'm drawn down around $30,000 right now on my SPY position. I'm certainly not going to sell it and take the loss. And if SPY hits 115 I'm going to add more. edit - this advice depends on the instrument being traded.
80%! That's phenominal. I remember the days when I used to lose like that on my $500 practice account. It was still emotionally devastating regardless of the fact that I only lost hundreds at a time. But I eventually learned that a 5% loss with a second attempt the next day or two days later was more profitable than the "hold 'n' hope" method. But seriously, manage your losses, and the wins will take care of themselves. There's a book on here that I recommend. "Trading for a Living" by Alexander Elder. Here's an exerpt from page 167 and 168 "Extensive testing has shown that the maximum amount a trader may lose on a single trade without damaging his long-term prospects is 2 percent of his equity. This limit includes slippage and commissions. If you have a $20,000 account, you may not risk more than $400 on any trade. If you have a $100,000 account, you may not risk more $2000 on a trade, but if you have only $10,000 in your account, then you can risk no more than $200 on a trade....The 2 percent rule puts a solid floor under the amount of damage the market can do to your account. Even a string of five or six losing trades will not cripple your prospects." Elder is very right. I also suffered 3 back to back losses during the time you were suffering your 1 gigantic loss.It wasn't a good month for me as I was in denial over the whole thing far longer than I should have been. The difference is that my losses were small and I went on to end my 4th trade with positive 7% account growth. My last trade not only wiped out my 3 losers, but it gained an additional 7%. The idea of going into a trade without knowing before hand how much I will lose if I'm wrong (and visualizing my account with that new, lower, amount to see if my emotions are okay with it) is just unfathomable. I wouldn't worry too much about recovering from this loss. I would change my focus to long term survival (loss management) and a strategy that doesn't depend on being right on any given trade.
And you, are a South Ga redneck stalker, go back to P&R where you belong make up some more right wing trash, trash