PSA: 30% loss means the stock needs to go up by 43% to return

This should be a basic no-brainer but everytime you see a stock go down 5% at the current price level. If it increases back by 5% it doesn't go back to its old price.

To illustrate.

10% loss needs 11% gain to return. 20% needs 25%. 30% needs 43%. 40% needs 67%. 50% needs 100%. At 90% drop your stock will need to go up by 900% to return to its old price.

Right now you're seeing NASDAQ dropping double digits and futures are down mid singles almost everyday.

The power of compounding works both ways.

2 days ago
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2 days ago