https://www.investopedia.com/investing/selling-a-losing-stock/ "A stock that declines 50% must increase 100% to return to its original amount. Think about it in dollar terms: a stock that drops 50% from $10 to $5 ($5 / $10 = 50%) must rise by $5, or 100% ($5 ÷ $5 = 100%), just to return to the original $10 purchase price. Many investors forget about simple mathematics and take in losses that are greater than they realize due to emotional distress. They falsely believe that if a stock drops 20%, it will simply have to rise by that same percentage to break even." This is complete nonsense. A stock that drops from $10 to $5 can just as easily increase back to $10. It happens all the time. The percent increase is completely irrelevant. If this was the case stocks would never channel.
Applying this concept to stock price may not appear to be so appropriate. However, it still applies well to a trading account.
No it doesn't. It's the same thing...portfolio goes down...portfolio goes up. The market probably wants you to think this so you all let go of your stocks dirt cheap. I mean think about it...if this was how it worked then why are hedge funds (and some retail) always looking to load up at the bottom of a capitulation? According to this math that would be a bad time to buy because it would likely never return to pre-drop levels lol. Here is an example..you can basically pick any stock to find an example because this is how all stocks move lol.
It's not irrelevant, as the article is not attempting to portray how "easy or difficult" it is for a stock to get back to it's original price. It is simply pointing out the factual maths.
If it was that easy to make 100% everyone would be rich. In reality a stock goes down 50% it is down for a good reason. Its unlikely to back to 100% anytime soon. If it is a volatile penny stock it could also go to 0. There will always be some exceptions, and you will point them out but that is in hindsight. Even if its a blue chip stock that's down 50%, it could take 10 years or longer to get back to even, eg GE.
Try comprehending what you read and copy from investopedia (a basic beginner type site) next time. Geez.
Don't dismiss @wxytrader outright. You picked a very bad example. Some better examples: META ~$375, Nov 2021, ~$90, Oct 2022, ~$325, Jul 2023 NVDA ~$330, Nov 2021, ~$120, Oct 2022, ~$465, Jul 2023 GOOGL, MSFT, NVO...... Of course, as always, the devil is in the details.