Drawdowns and recovery
Why losses take bigger gains to recover.
4 min · Intermediate · Lesson 4 of 8
Step 1 of 4
The math of losses
A drawdown is a drop from a peak. Recovering takes a bigger percentage gain than the loss, because the gain applies to a smaller amount.
- Down 10% needs +11% to get back.
- Down 25% needs +33%.
- Down 50% needs +100%.
For entertainment and education, not investment advice.