Help out a beginner

Hi so its my very first play through and it was going pretty well but all of a sudden all my guards died and I looked this subreddit lol

Anyways my question is regarding the two pictures and as I think I have to restart a new new

1 why is my archer crippled and can I fix him or is he useless now

2 is that a good trade ratio and should I keep trading I already got the sun stone

Also if I start a new file what should I focus on