Investing is all about managing risk, reward, and choosing the best locations to grow your money. Sometimes in the path towards successful investing you encounter a few speed bumps that hinder your performance. Other times, you run into a hurdle that knocks you flat on your ass. Significant losses to your portfolio are something every investor experiences atleast once, but not every investor recovers from. If you plan to be a successful investor, you need to learn to cope with these losses so that you can be able to recover and revive your underperforming portfolio. Here are ways you can cope with significant money losses in your portfolio:

Take Time Off
It will be very helpful for you to stay away from the market, if only for a day. Try and enjoy yourself without focusing about the big hit you just took. Pretend as if it didn’t even happen, and simply enjoy your day. If you need more time away from investing, take as long as you need. Your goal is to take your mind off your losses so that when you get back into investing, you return with a refreshed, rational, and positive state of mind.

Don’t Feel Discouraged
Despite how devastating a significant money loss can be, you cannot become discouraged from investing. You must intend to return so you can achieve your original investing goals. Investing isn’t easy, and if you want to be successful you need to be committed to it. Use the finish line goal as your motivation and disregard the current hurdles in your path. Even the most successful investors and traders have taken significant losses, so don’t feel like it’s a personal failure.

Consider it a Right Of Passage
As I said, everyone eventually takes a big hit in the stock market. Veteran investors know the pain of major losses, and they know it well. The consolation is that dealing with the emotional pain/discouragement will get easier as time goes on. You will be more experienced, and if you are unfortunate enough to receive another significant hit to your portfolio, you’ll be better prepared to cope with those losses.

Appreciate the Lessons You Learned
You always learn a great degree of knowledge from your mistakes. Take the time to appreciate the lessons you learned when you took a significant money loss. Make sure you realize what those lessons are, so you are sure not to repeat those same mistakes. For some investors, they use these lessons to build a list of rules for successful investing (going against the rules means risking a significant portfolio hit).