The loss: did you know?

Let's imagine you have 100 € invested in the stock market.

If you lose 50%, you have 50 € left.

To return to 100 € from 50 €, you need to gain 100%, because 50 € × 2 = 100 €.

So:

A loss of 50% requires a gain of 100% to compensate.

A loss of 20% requires a gain of 25% to return to the starting point.

The greater the loss, the higher the percentage needed to return to break-even.