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% gain to recover from a loss

Smart Finance

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Feb 23, 2021
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gumroad.com
Based off a portfolio/investment worth £1000
% Loss£ Loss£ remaining% Gain needed
1%£10£9901.01%
5%£50£9505.26%
10%£100£90011.11%
15%£150£85017.65%
25%£250£75033.33%
50%£500£500100%
75%£750£250300%

The larger the loss its quite amazing how much of a gain is needed to regain and break even.
Thought id just run through the numbers and really see how its affected. I think im going to view my losses a little different now haha.

Just like the saying let your winners run and cut your losers.
 
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Citylights99

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Apr 19, 2021
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Yes, this chart is very true. Should trade only with good stop loss. A stop loss shouldn't be very close, so that it wouldn't be triggered by market fluctuations. Always enter the trade with a good Risk-Reward ratio. Ideally enter the trade only if you can get a 1:2 risk reward ratio. Meaning for 1% risk you can get 2% reward. By following this even if you fail 50% of the time, since your reward ratio is greater you would have made profit and stay in the green. You capital would also appreciated. It's not the technical knowledge or financial knowledge that wins the market. It's discipline and good trading plan with favorable risk reward ratio and consistency, wins the market.