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.
