Why is it hopeless to recover your investment if you lose too much?

1. If you lose 3%, you need to earn back 3.09% to recover your investment.

2. If you lose 30%, you need to earn back 42.87% to recover your investment.

Let's take a specific example: suppose you have 100,000 yuan, and you lose 3% in the first transaction, your funds will drop to 97,000 yuan. At this time, you need to earn back 3.09% in the next transaction to recover to 100,000 yuan. But if you lose 30% in the first transaction, your funds will only be 70,000 yuan. To recover from 70,000 yuan to 100,000 yuan, you need to earn back 42.87% (that is, 30,000 yuan).

This not only takes longer time (time cost), but also requires you to encounter extremely rare strong unilateral market conditions in the market (the probability of occurrence is small).