Hey guys,
We all experience losses when trading. Nothing can be gained without losing. The pain is inevitable, whether it's the account liquidation when trading with leverage or a shitcoin plummeting to zero due to a questionable decision by the team, like using project funding to buy a home. However, managing losses is a crucial aspect of long-term success, have you ever stopped to consider how much is required to recover from those losses?
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Loss Levels and Corresponding Recovery Percentages:
Loss of 5%:
Recovery Target: 5%
Loss of 10%:
Recovery Target: 11%
Loss of 15%:
Recovery Target: 18%
Loss of 20%:
Recovery Target: 25%
Loss of 25%:
Recovery Target: 33%
Loss of 30%:
Recovery Target: 43%
Loss of 35%:
Recovery Target: 54%
Loss of 40%:
Recovery Target: 67%
Loss of 45%:
Recovery Target: 82%
Loss of 50%:
Recovery Target: 100%
Loss of 55%:
Recovery Target: 122%
Loss of 60%:
Recovery Target: 150%
Loss of 65%:
Recovery Target: 186%
Loss of 70%:
Recovery Target: 233%
Loss of 75%:
Recovery Target: 300%
Loss of 80%:
Recovery Target: 400%
Loss of 85%:
Recovery Target: 567%
Loss of 90%:
Recovery Target: 900%.
Loss of 95%:
Recovery Target: 1900%
Loss from 5% to 40%:
I believe this task is achievable without requiring excessive risk to mount a comeback within this range.
Loss from 45% to 60%:
If your trade reaches this level of loss, a substantial amount of planning and risk will be necessary to recover the losses adequately.
Loss from 65% to 95%:
In such a scenario, a comeback will be exceedingly challenging, though not impossible. Crypto investments can yield such returns, but achieving it demands impeccable trade execution, precise entries with higher-than-usual leverage, and essentially trading with a substantial amount of risk, almost in a speculative or 'degen' style.
I hope that after reading about the goals for recovering losses, traders will now set tighter stop losses with smaller percentages.
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