Markets move in two directions, and protecting principal and preserving gain is one key to long-term investing success. In a sharp market decline, it does not take long before you start losing your hard-earned principal. It can take twice as long to recover from a large loss. Major bear markets do occur regularly and the losses can be devastating both financially and emotionally. Not only can losses be severe, but bear markets can also last for extended periods. The duration of the average bear market is almost seven years, with losses of thirty-eight percent. A thirty-eight percent loss requires a sixty-two percent gain to break even.