For those who have lost a huge part of their bank, how did you build it back up?
Losses can be excruciating and difficult to manage. I did lose for 11 years and yet kept learning more ways not trade the forex market... Then positive changes started occurring when I took the steps stated below...
Pick one currency pair and do thorough research on it. Specialization increases accuracy and competence.
CLARITY OF PLAN:-
Plan trade level ahead of time, do not be reactionary to prices, be anticipatory of prices. Without clarity of plan, these fluctuations will shake your psychological balance.
DIVERSIFY YOUR PORTFOLIO:-
Endeavor to have at least two trading accounts, FIRST ACCOUNT FOR SCALPING and the SECOND ACCOUNT FOR SWING. Most times we are compelled to SCALPING each and every 10-30 pips move which usually works out in a ranging market condition then lose it during break outs and volatile market trend... That's where SWING comes in which allows for trades to run for a longer period without compulsion to catch every opportunity.
REDUCE YOUR LEVERAGE:-
Leverage is a double edged sword, can make you proper faster and can make you crash funds with speed too. Reducing your leverage will in turn reduce your risk exposure.
CONSIDER LOWER LOT SIZES:-
When you are on a run of winning trades, your confidence will definitely skyrocket and you will feel invincible, that is when caution of lot sizes should be observed... Maintain same lot size even after 100% growth of the account.
AVOID PRICE TRAP:-
Buying at a higher price or selling at a lower price simply because price is trading in a tight range at that level is a recipe for disaster, know when to Stand aside and when to exit. Leave the trade when the euphoria is loud.
When the sentiment of the market towards a particular direction is at its strongest is when you should stand aside and observe carefully. Distract yourself with other things to avoid over trading or compulsion to trade any price you see.
I hope this helps a little...
Recover and overtake with believe!