This is for newbies, so take this very seriously. If you buy an asset or security and it dips by 10%, you need it to rise by 11% to break even. If it is down by 40%, you need it to appreciate by 67% to break even.

Now let’s put numbers to it. JaizBank is down from its previous all-time high. Let’s say you bought the top at N15.45 per share with N1,000,000. This means you will get 64,725 units (now factor in fees so the units will not be exact, but for the purpose of this lesson we will assume exact). Currently JaizBank is trading at N10.8 per share, so your current worth of Jaiz is now N699,030, meaning it is down by 30% in your portfolio. You would need Jaiz to run from N10.8 per share to N15.45 per share to break even, which is 43.06%.
Don’t get it twisted: we are not sure JaizBank will reverse from the N10.8 per share region. In essence, all I am saying is do not be emotional and understand the levels you are buying at. Never buy at ATH except if you already bought at a cheap price, your average cost makes sense, and you love what the company is doing with strong fundamentals. Never marry your bag as you could even lose 60% to 70%. The market is volatile and you have to be very careful.
The attached screenshot is also for you to study. I have a lot to say. This is all about risk management and do not get caught.