Recent GBP flash crash has wiped out a lot of traders’ accounts and it looks like some brokers will also go out of business because of this. Not only because they also lost a lot of money, but also because of the reputation they have built for themselves in regards to honoring stops and potential lying.
I have lived through about 4-5 flash crashes in several markets over the years. I don’t know a good trader who hasn’t been on a wrong side of a flash crash in the last several years. I know that there is no amount of words or sentences that can return your lost funds. There is a possibility of a class action law suit that can take a long time with a small settlement.
Right now is a very critical moment in your life and I want you to own it. I want you to make the best of this and in this letter I will describe how and what I did in the past.
To gain confidence in myself, trading and the whole system I started out by
– taking a little break to clear my head, it can be anywhere from a few days to a few weeks or even a month
– counting my blessings: I still have limbs, friends, family, health and I am loved
– remembering all of my successes as a trader
– getting very clear on what I really want in life and career
– taking important lessons from what happened
– applying those lessons in the future trading when I return
– do more research and education on the matter and trading as a whole
– learn more about risk management and trading psychology
– start taking care of my body, health and the mind by practicing daily mindfulness meditation
– stay social and forgive myself and others, I only have myself to blame and no one else
– take full responsibility of what happened no matter how hard it is and then let go, how? Just let go.
Everything that happens in life can be a lesson, when something good happens we look to ways of repeating it, when something uninvited happens we look for ways to avoid it in the future. This event and others are lessons for us. We will all take away different lessons from this and become better and stronger because of this. There is nothing more powerful than who you are as a person, do not let anything or anyone break that! Instead you have a decision to make right now. There are many other traders who are in exact same shoes as you are or even worse, some of them will be defeated mentally, or worse (we know it from the past, 1929, 1987, 2001, 2008, etc), yet many will overcome this and come out a better person/trader despite of the event. I think this is the only way to get back at “them”, by being strong willed, patient and forgiving.
When I get into a negative thought pattern I remind myself that ‘it is what it is while it is”. I ask myself how I am feeling right now, over and over again until I get an answer(s) and I distance myself from these thoughts that do not let me move on and do the right thing.