#TradingPsychology

Why is it so hard to recover from big losses in trading? Let’s break it down:

A small loss is easy to bounce back from.

Lose 3%, and you only need a 3.09% gain to break even.

But lose 30%, and you’ll need a massive 42.87% gain just to get back to where you started.

Example:

Start with PKR 100,000.

• A 3% loss drops you to PKR 97,000.

• To return to 100K, you need a 3.09% gain on 97K.

Now imagine a 30% hit—your balance falls to PKR 70,000.

To recover that, you need a 42.87% gain, which is much harder.

Big losses don’t just take more time to recover—they demand rare and favorable market conditions. And let’s be real, those don’t show up every day.

Moral? Risk management isn’t optional. It’s survival.

Follow if you’re on the path to recovering your losses—or want to avoid them in the first place.

#RiskManagement #InvestSmart #MindsetMatters #StockMarketTips