To recover Capital in Forex really takes a lot of knowledge and patience. For this all Forex traders should ensure that they control their losses and keep them very small when they trade. and As you said properly recovering from the loss is very difficult. When a trader loses most of his capital, confidence is lost. Since then a recurring error has occurred. This is a very difficult cycle to stop. That is the reason to emphasize using low leverage / exposure. Small losses will not lower your morale. Big losses will beat your spirit to earth. Capital management is a very important task for traders. A little too trusting is all it takes to lose everything in the Forex market.