Having a difficult time mentally getting over large money loss

Hi guys, I lost a very large amount of money in the stock market buying growth stocks at the top which all crashed and lost between 70-80%. (Square, Affirm, Upstart, etc etc) The amount is very embarrassing, an amount over $200k. None of this was profit, this was money I worked a long time for. I vastly underestimated the extent of the recession we're in and kept averaging down, averaging down, and averaging down again and it is very unlikely I will see that money back unless a miracle recovery happens.

The good news of this is I'm young, still have plenty of cash left, and I have a decent business outside of RS and make decent money, but still struggle to find acceptance in having lost so much money. It's difficult for me to keep hustling and working knowing how much I threw away. I am looking for guidance and words of encouragement or someone who has experienced something similar to get back on my feet after such a large setback.

 

The stock market hasn't lost money in a 10 year span. You haven't lost anything unless you pull your money out. Stay strong and see how it plays out.

 

It's never a given that the stock market will always be in a good standing. There is a lot of uncertainty involved, especially at a time of economic peril and confusion. Going into investing, you should already have in your mind that you have the potential to lose whatever you put in to invest. This will lessen the blow if that does happen. You should treat this as a lesson going forward. Try to see what you could have done different to possibly mitigate this result, or what is a better investment during times like these. You will bounce back.

 

Honestly? Start viewing them as assets instead of valuations. The economy is in a bad place and some banks are likely to fail. You're going to see people who never invested at all lose the $200k sitting in their savings account. Realistically, the vast majority of people who have invested in the last 5 years are down a significant amount. Maybe they're not down as much as you are, but you're all in the same boat.

The difference here is that you seem to be in a stable situation where you're capable of riding it out long term - A lot of people don't have that opportunity and are forced out of the markets at the worst time. You've built a solid foundation where you can still continue to invest while the prices are low.

When things turn to shit, you've still got that safety net built up behind you. While other people are jumping ship, you're loading yours up with extra cargo. A change of perspective can help a lot.

 

Large financial losses can definitely be anxiety/stress inducing situations. I once played with bitcoin during the beginning years and lost nearly 50k overnight. The thing is, Stocks are never guaranteed so whatever you put in be willing to lose… sorry you’re going through what you are but have some joy in the fact that you ARE going to be okay financially and mentally.

 

i lost 30k once, never sold the stock… 2 years after im up those 30+20, just keep them they’ll eventually go up like always.