Short #002 · Returns · Sep 26, 2026
Lose 50%, Gain 50%... Why You're Still Down 25%
Why does losing 50% require gaining 100% to recover?
A percentage is measured from wherever you are right now. After a loss your pile is smaller, so the same percent is worth fewer dollars, and a 50% drop takes a 100% gain to undo.
Sources
- Percent change = (new − old) ÷ old: U.S. Bureau of Labor Statistics,
- The SEC's own example of an equal loss then gain not breaking even ($1,000 → $900 → $990)
Educational only. Not financial advice.