Jay Schrader

the best trading reactions

Drawdown recovery

A loss and the gain that undoes it are not the same number, and the gap gets vicious fast. Down 50% needs a double just to get back to even.

The whole table
You loseYou need
−10%+11.1%
−20%+25%
−30%+42.9%
−50%+100%
−70%+233.3%
−80%+400%
−90%+900%
−95%+1,900%

Every Monday I send one email about the week's worst trades. Blown accounts, margin calls, six figures gone in an afternoon.

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