Forex For Beginners by Coulling Anna

Author:Coulling, Anna [Coulling, Anna]
Language: eng
Format: epub, mobi
Tags: forex trading
Publisher: Anna Coulling
Published: 2013-10-28T23:00:00+00:00

$100/$1000 x 100% = 10%

The next question is this. How much, in percentage terms, do we have to regain, in order to return to our starting point of $1,000? To find the answer, we simply take our remaining capital, which is now $900, and calculate $100 as a percentage of this figure.

$100/$900 x 100% = 11.11%

In other words, we have lost 10% of our starting capital, and in order to recover this amount and get back to ‘square one’, we have to make 11.1% on our remaining trading capital. This is how the maths works against us, and as the losses increase, then the harder it becomes to recover.

Imagine if the loss were 20%, then to recover, we would need a return of:

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