In the world of investing and trading, where there are huge roller coasters.
I was trying to understand how not only gains work, but also how to recover from losses.
This means understanding the percentage you need to gain to recover the losses incurred.
I tried understanding with this example: Suppose I bought stock at Rs 100 per share, but the market value drops to Rs 80 per share. That’s a 20% loss. So, to recover the losses, do you also need to gain 20%?
Surprisingly, the answer is no.
Reason: The percentage gains you need to recover completely aren’t calculated from your initial buy value, but from the depreciated value after the loss. In the above example, that’s Rs 80.
So, how much of a gain on this Rs 80 will get your original Rs 100 back?
Let’s do the math: To recover the Rs 20 I lost, I divide the amount I need to regain (Rs 20) by my current amount (Rs 80), giving us 20 ÷ 80 = 0.25.
So, the gain I need to precisely offset my loss is not 20% but 25% of the new, lower value. Considering this, it becomes clear that the higher the percentage of loss, the greater the percentage of gain I need to break even.
Since now the market has bounced I’m not saying its recovering 
, Its crucial to make accurate calculations about our investments and set realistic expectations about recovery from a market downturn.
In that way nifty has lost 15% plus and needs 18% at least to recover.
I was trying to check on few stocks that has been hit:
Titagarh Rail- from 1817 to 654= 64.01% approximately need 177.67%
Adani Green Energy- from 2087 to 796 = 61.87% approximately need 162.31%
Apar Industries-57.33%-from 11779 to 5025 approximately need 134.58%
HFCL Ltd-56.14% - from 171 to 75 approximately need 128%
To all the experts and enthusiasts out there how much percentage do you think your favorite stock needs to recover?
Im just curious which stock shall take the highest percentage to recover so that I dont invest in them, i cant wait so long 