How to Recover From a Big-Money Loss in the Stock Market?

Putting it simply, it's inevitable - if you invest in stocks you're most likely going to lose money at some point. One in four investors has experienced major stock losses that affected their overall financial situation.

Invest Again

My best time-proven way to recover after losing money in the stock market is to invest again. I always save some of my income, so that I can buy more stocks over time. This helps me in periods with bear markets and declining stocks, I can then buy more in those I believe in or are undervalued in my analysis.

Don't Beat Yourself Up

Don't hide and put your money under the mattress, because you'll never recover anything that way. Also a crucial detail - never beat yourself up for your mistakes. It's a stock market, that sort of thing will always happen. It’s okay to lose money and every stupid decision is an opportunity to learn.

Examine Your Trading Plan

When you're ready to face the music, look at your trading plan, find what is causing the problem and address the issue by making the necessary trading plan changes.

Don’t let losses define you.

Keep the loss in context and don't take it personally. Remind yourself that a lot of other people out there took a hit just like you did, and perhaps even more of a hit than you did.