If one thing that I have learned from my stock trading class, this is the one ...
IF you lose 20%, it will take you 25% gain to make up for your loss
IF you lose 25%, it will take you 33% gain to make up for your loss
IF you lose 50%, it will take you 100% gain to make up for your loss
IF you lose 80%, it will take you 400% gain to make up for your loss
IF you lose 90%, it will take you 900% gain to make up for your loss
So true and this is why trading is simply "not fair." However this is based on % gains with ONLY your remaining position left. If you have access to more capital, then it does not require as much of an increase to get it back. If for example, if you lost 80% of a $10,000 investment, you are left with $2,000. Yes, using ONLY that remaining $2,000 would take a 400% gain to recoup those losses. However, if you inject an additional $10,000 onto your remaining $2,000, that equals a total investment of $12,000, which would then take only 67% to recoup original losses of $8,000. Still a lot, but not unimaginable. Make sense? I hope so, as math is not my strong area.