Trading Newbie's Must-See!


One, About Earnings
Assuming you have 1 million, when the profits reach 100%, the assets will reach 2 million. If you lose 50% after that, it means your assets will return to 1 million. Obviously, losing 50% is much easier than earning 100%.
2. About the price fluctuations
If you have 100W, your assets will reach 110W after a rise of 10% on the first day, and then your assets will be reduced to 99W after a fall of 10% on the second day. Conversely, if there is a fall of 10% on the first day and a rise of 10% on the second day, the assets will still be 99W.
3. Regarding Volatility
If you have 100W, earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, and lose 20% in the sixth year, the remaining assets will be 140.5W, and the annualized rate of return for six years is only 5.83%, even lower than the face Intrerest Rate of the 5-year certificate-style government bond.
Four, about 1% per day.
If you have 100W, and you can earn 1% per day and exit, then after 250 days, your assets can reach 1203.2W. After 500 days, your assets will reach 1.45 billion.
Five, about 200% per year
If you have 100W, and the return rate reaches 200% for 5 consecutive years, your assets will reach 2.43 hundred million after 5 years, but this high return is difficult to sustain.
Six, about ten times in ten years
If you have 100W and hope to reach 1000W in ten years, 100 million in twenty years, and 1 billion in thirty years, then you need to achieve an Annual Percentage Rate of 25.89.
7. About Margin Replenishment
Suppose you bought 10,000 yuan worth of a certain currency when it was 10 yuan, and now it has dropped to 5 yuan. If you buy another 10,000 yuan at this time, the cost in your hands can be reduced to 6.67 yuan, not the imagined 7.5 yuan.
8. On the issue of holding costs.
If you have 1 million and invest in a certain coin with a profit of 10%, when you make the decision to sell, you can leave 100,000 yuan of market capitalization chips. Then your holding cost will be zero, and you can hold it for a long time without any pressure. If you are extremely bullish on this coin and leave 200,000 yuan of market capitalization chips, you will find that your profit will rise from 10% to 100%. However, don't be complacent because if this coin falls by 50% later, you may still lose money.
9. On Asset Allocation
If you have risk-free asset A (annual yield of 5%) and risky asset B (yield of -20%-40%), and you have 1 million, you can invest 800,000 in risk-free asset A and 200,000 in risky asset B. The worst annual return you can get is, and the best return may be 12%, which is the prototype of CPP technology applied to capital preservation funds.
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