💥 The Myth of Recovering a Loss in One Trade
🎯 The Lesson
You take a big loss.
Your first thought? “I’ll make it back in the next one.”
That single thought has ended more trading careers than bad strategies ever did.
Recovery trading feels logical — but mathematically, it’s suicide.
⚙️ Step 1: The Recovery Trap
Let’s say you lose 20% of your account.
To get back to break-even, you now need a 25% gain.
| Loss | Needed Gain to Recover |
|---|---|
| 10% | 11% |
| 20% | 25% |
| 30% | 43% |
| 50% | 100% |
The bigger the hit, the harder the climb.
That’s why trying to “win it back fast” is the worst possible plan.
🧮 Step 2: Why It Feels Right but Isn’t
When you lose, your brain releases cortisol — stress hormone.
It pushes you to act, not think.
So you enter quickly, double your lot size, and call it “confidence.”
But you’re actually increasing exposure with less accuracy — the exact formula for account destruction.
📊 Step 3: How Pros Handle Losses
1️⃣ Accept it instantly. Losses are part of your statistics.
2️⃣ Cut size in half for your next few trades.
3️⃣ Re-evaluate what caused the loss — setup, timing, or psychology.
4️⃣ Wait for the next A+ setup — not just any opportunity.
They recover through consistency, not revenge.
💡 Step 4: Use the “Recovery Mode” Rule
If your account drops by more than 5%, your only goal becomes damage control:
-
Risk 1% max per trade
-
Stop trading for 24 hours after 2 losses
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Focus on small, clean wins
You’ll rebuild faster by slowing down.
🚀 Takeaway
Trading isn’t about bouncing back fast — it’s about not falling deep.
The best traders don’t chase losses; they rebuild methodically.
Protect capital first. Recovery will follow naturally.
📢 Join my MQL5 channel for more trading & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
