RECOVERING LOSS IS A TRAP | OPTION TRADING | STOCK MARKET LEARNING

 Trading to recover loss is a TRAP!

So, you have lost your capital. Don't get upset, I know it is a very bad thing that can happen to any hopeful trader. 

Just remember that it is a part of learning. A great trader must have a great loss to have a greater understand of Trading.

To minimize the loss is the only reason people like to use stop-loss feature.

If you want to know why and how to use stop-loss feature check out this article here = link

Losses are lifelong partner of a trader.

The only thing that separates people from a loss-making trader to a profitable trader is the effectiveness of cutting the trades that are running is loss.

You have to accept the loss. 

"If I don't take the loss than I am not in the loss", is a wrong approach towards loss making trades.

You have to limit your loss. 

You have to understand that a day without profit is still a day. Maybe you haven't made any profit, but you learnt something.

The day had given you something other than money. Cheerish that because it will definitely save you from making losses in the future. 

Be brave to accept the losses.

Something that you should do if you had blown up your capital:

1.  Don't invest for recovery = Do not try to recover your capital by investing more in the stock market. Why? Because you are much likely to do an emotion driven trade that will be most likely to be adding your losses. Try to recover your losses by doing something else other than trading. In the meantime, learn more on how to take better trade, how to apply risk management, and how to read charts and use indicators.
2.  Close your system = Close your system. See, believe it or not but stock market somethings feel like a slot machine, you will definitely try to gamble. Trust me, your mental health and your time is precious. You can recover all your loss but not with the mindset of 'recovering your losses'. Close the system, get out of your room, go in an open area, take a deep breath and think what to do now, other than trading.
3.  Market Education = You don't have that much education or experience about the stock market and about the Options and Futures market. 
4.  Start Small = Once you have your loss recovered or you really want to trade again than start small. For example, if you have RS:10,000 than trade maximum to 25% of your capital that is, RS: 2,500. Now this RS:2,500 is you practice amount and try to trade it by applying right risk management and try to take less loss and more profit. 

Very well then, these are the things that you should be considering doing as soon as you blown up your capital.