A 50% loss needs a 100% gain just to break even.
That's why cutting losses isn't optional—it's survival.
Here's the brutal math:
Lose 10% → need 11% back
Lose 20% → need 25% back
Lose 30% → need 43% back
Lose 40% → need 67% back
Lose 50% → need 100% back
Lose 75% → need 300% back
Lose 99% → need 9,900% back
Formula: gain needed = loss ÷ (1 - loss)
Small losses? You recover in the normal flow of trading.
Big losses? You're praying for a miracle.
Percentages don't pay rent. Dollars do. And the dollar math is asymmetric as hell.
Cut early. Cut small.
Because waiting for a moonshot just to get back to zero is how you stay broke.
That's why cutting losses isn't optional—it's survival.
Here's the brutal math:
Lose 10% → need 11% back
Lose 20% → need 25% back
Lose 30% → need 43% back
Lose 40% → need 67% back
Lose 50% → need 100% back
Lose 75% → need 300% back
Lose 99% → need 9,900% back
Formula: gain needed = loss ÷ (1 - loss)
Small losses? You recover in the normal flow of trading.
Big losses? You're praying for a miracle.
Percentages don't pay rent. Dollars do. And the dollar math is asymmetric as hell.
Cut early. Cut small.
Because waiting for a moonshot just to get back to zero is how you stay broke.