I Know Why Some People Become Depressed Or Suicidal When They Lose A Lot Of Money

People can lose a huge amount of money for various reasons and we only need to look at the news this year to know how. It ranges from online scams to crypto crashes to failed investments.

When a significant loss of wealth or capital happens, it is usually very devastating to the affected investors or victims, who may spiral down to depression or suicide, especially if they have lost most of their hard-earned savings that took years to build up.

In this article, I want to share why people who have lost a lot of money feel that way and how you can self-help if you are in a similar situation.

My Story

I shared in an earlier article about my huge unrealized loss of capital when the stock market crashed. More than half of the unrealized losses come from my options contracts that have expiry dates and losing value by the day.

What Is Worse Than Having A Portfolio With $618,800 (Unrealized) Loss?

The recent rally makes things slightly better for my LEAPS CALL Options Portfolio but I am still down 76%. With the clock ticking down every day, I am contemplating whether to realise these losses and clear out this portfolio.

But in doing so, I will be losing making a $362,946 realised loss, which is absolutely significant in my portfolio as I do not have millions of investment capital, to begin with. On the other hand, being at the mercy of the market, every day hoping that it will rise instead of fall, and listening to all the ominous warnings from financial analysts, is not a great feeling too.

The Years To Get There

The folks who lost a great deal of money suffered the pain of losing the savings that they took years to build up. Every penny was accumulated through thrifty spending or earned through the blood and sweat of diligently working every single day for decades of their lives.

What Money Can Do For Them

I personally cut $135k worth of losses that were accumulated through bad investment decisions in the first 8 years of my investing journey.

I Cut $135,715 Worth Of Losses In The Last 1.5 Months

If I were to cut another $362k of losses, that would have brought my total loss to half a million. So, I can buy many things with half a million or even fast-track my retirement plan by a decade.

So when people lose money, they do not just lose cash, they lose some of the dreams that money can help them achieve.

Looking Back in Regrets

What adds to the misery is looking back in regrets, on how they should have or could have prevented this from happening, like being too gullible to believe the scammers or being too greedy with easy cash.

I also looked back at how I could have exited much earlier and prevented such a huge loss and asked myself why I did not heed the warning signs.

Wealth & Status

Many people see wealth as a form of status because the rich are well-respected and powerful. When people see others who are able to drive posh cars or stay in landed property, they interpret having these material assets as a form of achieving success in life.

Losing money or being poor on the other hand may make some people feel like they are not intelligent, successful or have achieved anything in life.

Fear Of Being Judged

That brings me to the next point on the fear of being judged by other people.

When I shared that I have lost money in investing or trading, I am also conscious and fearful of being judged by people who know or don’t know me (keyboard warriors reading my blog).

I started my blog wanting to share the methods that help me make money and hope they can be useful to others too. However, there are people calling me a “fake guru” or pretending to be a guru and flip-flopping when I lost money. I have never claimed to be a guru and I have always iterated that I am a newbie learning the trade, but there are still some people who enjoy the thrill of passing hate comments and nasty remarks.

Self-Blame, Self-Pity

When everything starts crashing down, it can turn into self-pity and or self-blame, which is totally destructive. The person who lost a lot of money starts to blame himself/ herself or the people who indirectly caused this misfortune for what happened and eventually conclude that his/ her life is a failure, which can spiral one into depression. We live searching for a purpose for our existence and if we one day come to a conclusion that this life is waste, it is going to hit us hard.

Part 2: Not All Is Lost

In the 2nd part of this article, I want to explain to you why you may have lost a lot of money, but you have not lost everything you have or are precious in life. Hopefully, it gives you a different perspective towards money.

Health Allows You To Earn Money But Money Can’t Buy Back Health

With a healthy body, you can work hard to earn money. But when health is failing, it can never be earned by with money. I remembered this scene from Korean drama “Squid Game”, where the creator of the game (aka No. 1) shared that he was also filthy rich but could not find any meaning in life. So, he created the “Squid Game” and participated in it. Eventually, his fortune could not save him from dying from his brain tumor.

You may think the money can buy you good food to improve your health or give you the best treatment by top doctors but there is no guarantee that good food brings good health or that the best surgeon will always guarantee a successful surgery to prolong your life. When time is up, no money can buy you more time.

I made a video sharing how wealth, fame and social status do not equate to a long-lived or healthy life.

Money Is Not Truly Yours Until You Have The Chance To Use It

Some people accumulated millions of dollars but never had the chance to use it because they die too early. Others like Bill Gates, Warren Buffet are pledging to donate more than 99% of their fortune away after their deaths.

So, what if the money that you lose now is the money that you do not need eventually?

You Are Not Alone

Always remember that no matter what happens, or how much money you have lost, you are not alone. There are people who have lost tons of money through failed business venture, stock market crash, crypto crash, scams and many more unfortunate events, but have picked themselves up and move on with life.

Also, don’t compare or envy those who have earned a lot of money in life. They may have came back from bankruptcy, poverty or have other issues to deal with. Before J K Rowling became the first billionaire author writing the Harry Potter series, she was broke and depressed.

Don’t Be Afraid To Start All Over Again

If you have lost all your money, know that you can still start all over again and make back all your money. Maybe you will find new avenues to grow your wealth. In my 10 years of investing, I have lost a lot of money, then earn back a lot of money and now lose a lot of money again. You can read about my investing journey here:
Happy 10 Years Of Investing | 348k (Realised) Profit, 635k (Unrealized) Loss & 10 Lessons Learnt

But I believe the road is still long ahead and full of ups and downs, just like life. If I don’t give up, I am sure I will still be successful when I look back a few decades later.

Seek Help

If you are feeling depressed and suicidal, please talk to your good friends or family members and seek professional help. It is not a shameful thing to seek help, nor is it a sign of weakness. In life, we take turns to encourage and support one another so if you need help, don’t be embarrassed to ask for help.

If you are residing in Singapore, here are some of the numbers that you can call if you need some help or counseling services:

National Care Hotline: 1800-202-6868 
(8am-12am daily, from 1 Sep 2020)
 Mental Well-being
– Fei Yue’s Online Counselling Service
– Institute of Mental Health’s Mental Health Helpline (6389-2222)
– Samaritans of Singapore (1800-221-4444)
– Silver Ribbon Singapore (6385-3714)
 Marital and parenting issues
– Community Psychology Hub’s Online Counselling platform
 Violence or abuse
– Big Love Child Protection Specialist Centre (6445-0400)
– HEART @ Fei Yue Child Protection Specialist Centre (6819-9170)
– PAVE Integrated Services for Individual and Family Protection (6555-0390)
– Project StART (6476-1482)
– TRANS SAFE Centre (6449-9088)
 Counselling
– TOUCHline (Counselling) – 1800 377 2252
 For other Helplines and mental health-related support– go.gov.sg/hotlines (BELLE, Beyond the Label helpbot)
– www.msf.gov.sg/Pages/Contact-Us.aspx 

If you are living elsewhere, just google search for helplines that are available in your country.

I hope this article brings some comfort to you and feel free to get in touch with me if you are struggling to cope with your financial losses. I wish you all the best and may you live a really great life.

*** FREE RESOURCES ***
Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading

After accumulating more than 600k of unrealized losses on my portfolio, I wrote this article to encourage friends and investors who are also losing a lot of money to the market.
If You Are Feeling Depressed From Losing Lots Of Money In The Stock Market, Here’s An Article For You

In the 10 years of my investing journey, I have made many mistakes but also learned many lessons from these mistakes. I compiled the 10 most valuable lessons that I have learned and may they help you succeed in your investing journey.
Happy 10 Years Of Investing | 348k (Realised) Profit, 635k (Unrealized) Loss & 10 Lessons Learnt

I did these 10 side hustles while holding a full-time job, so I share them here so you can be inspired to grow your wealth through a side hustle that you enjoy.
I Did These 10 Side Hustles While Working Full Time | 10 Side Hustle Ideas To Help You Earn An Extra Income

Struggling with inflation and high cost of living? Try these 10 methods to help you save money and accumulate more savings for investments or rainy days.
10 Ways To Save Money To Help You Fight Inflation & Rising Costs Of Living

Excited to start your trading journey or perhaps try out with a paper trading account to build your confidence in trading? Check out this step-by-step to help you get started:
How To Buy Options on Interactive Brokers (Step-By-Step)

Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts on executing these trades:
MY TRADES

Also, check out my trading strategies in different market conditions, whether it is bullish, bearish or volatile:
How Not To Lose Money In Trading? | My Trading Strategies For Bullish, Bearish And Volatile Market

I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
My Secret Weapons For Options Trading: I Watch These YouTube Financial Channels Every Day

I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sense of the percentage yield I get out of my gains:
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021

This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
I Cut $135,715 Worth Of Losses In The Last 1.5 Months

Follow me on your favorite social media platforms, FacebookLinkedIn, or Twitter, to get notified of my latest blog posts. Or join our investing/ trading community at Telegram to exchange ideas or ask questions relating to investing/ trading.

*** FREE EBOOK ***

Download a free (Volume 1) copy of my motivational book to help you cope with the negative emotions in life and find the happiness that you deserve.

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