#Warning⚠️ The Hidden Math Behind Investment Losses Can Wipe You Out❗ Why Recovering from a Big Loss Feels Impossible❗Let’s break down the cold, hard truth of investment math.
Say you lose just 5% of your capital. To get back to breakeven, you need a 5.26% gain not too bad. But here’s where it gets dangerous…
Imagine you start with 100,000 yuan and suffer a 40% loss. Your balance drops to 60,000 yuan. Now, to climb back to 100,000, you don’t just need 40% you need a whopping 66.67% gain!
That kind of recovery isn’t just rare it demands perfect conditions, high momentum, and a lot of patience. And let’s be real, those setups don’t come around often.
So what’s the takeaway? The more you lose, the harder it gets to bounce back. Protect your capital like your life depends on it because in the trading world, it actually does.