Nov 2, 2013

Percentage gain required to recover percentage loss

There is reason why big names like Warren Buffett and others in investment and trading put focus on 'not losing' money as their first rule. When you lose money, you have to recover it first and get even before you make any profit on the initial or starting capital. What happens is that when you lost money from the start or out of the initial investment or margin money in case of trading, you have to earn more in & terms to get even. Above...