Never lose money

We dislike being wrong and pride is one of the wrong reason for holding on to a losing trade. This is different perspective if you are a long-term investor.

Lose          
Returns needed to 
break even (%)
-5%
5.26
-10%
11.11
-15%
17.65
-20%
25
-30%
42.86
-40%
67
-50%
100
-60%
150
-70%
233
-80%
400


Investors who have a loss-adverse nature needs to execute a stop-loss rule early. A losing trade makes the fear of loss become unbearable, or an investor is forced to close a position which is leveraged. From a mathematical perspective, the bigger the loss, the higher returns needed to break even.

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