4 Ways to Cope with Investment Losses

Investment Loss

Over the weekend, some retail investors have been reeling (or are still reeling) from their losses on FTX, a cryptocurrency exchange.

The saga began with speculations about FTX’s financial health, which triggered hordes of users to withdraw their cryptocurrency from the platform. The next thing users knew, withdrawals were frozen on FTX, and the exchange filed for bankruptcy.

If you were unaffected or one of those anti-crypto investors, understand that this could be a difficult time for some, and do be sensitive. There cannot be a worse time to jeer and jump in with ‘I told you so’.

If you had made investment losses, here are some ways that may help you to cope better:

1. Remember that you are not alone

Sometimes it helps to know that there are people out there who have suffered the same fate as you. When your heart sank at that moment, more people than you could have imagined probably had that same feeling.

2. Journal

No doubt it’s been a hefty lesson.

If anything, journal your thoughts and learnings. What could you have done to avoid this? Was it about doing more research or erring more on the side of caution? Or was it about being faster to react or being more rational about your investments? Write it down, and be sure to go back to it now and then to remind yourself.

3. Talk to people to feel better

This could be people on your community finance chat groups, a family member, or a friend. Having support during a difficult period is extremely important, and letting someone know about your situation also helps to keep you accountable.

When you’re ready, perhaps it’s time to

4. Breathe, accept and move on

The truth may be difficult to swallow, but understand that there’s no utility in playing the blame game or wallowing in self-pity for too long. Evaluate your damage, and revisit your financial goals. As they always say, life is a marathon. Do a stock-take on your situation right now, and then plough on to think about how best to continue on your journey.