It's also the reason why it's so important in investing not to lose your principle (Warren Buffet's #1 rule - don't lose money #2 - see #1): If you start with

It's also the reason why it's so important in investing not to lose your principle (Warren Buffet's #1 rule - don't lose money #2 - see #1): If you start with $100 and you want to make $150 you need to make a 50% return. If your $100 drops to $50 you need to make a 100% return just to get back where you started, let alone where you want to end up at $150.