1. About making money
Suppose you have 1 million, when the return reaches 100%, your assets will reach 2 million. But if you lose 50% next, your assets will return to 1 million. It can be seen that it is much easier to lose 50% than to earn 100%.
2. About the price fluctuation
Suppose you have 1 million, and it increases by 10% on the first day, reaching 1.1 million, and then it drops by 10% on the second day, leaving you with 990,000. Conversely, if it drops by 10% on the first day and increases by 10% on the second day, your assets will still be 990,000.
3. About Volatility
If you have 1 million, you 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, and your assets are only 1.405 million. The annualized rate of return over six years is only 5.83%, even lower than the 5-year treasury bond rate.
4. About 1% per day
If you have 1 million and you can earn 1% every day, after 250 days, your assets will reach 12.032 million, and after 500 days, your assets will reach 145 million.
5. About 200% per year
If you have 1 million and your return reaches 200% for 5 consecutive years, then after 5 years, your assets will reach 243 million. But such high returns are difficult to sustain.
6. About 10 Times in Ten Years
If you have 1 million and hope to reach 10 million in ten years, 100 million in twenty years, and 1 billion in thirty years, then you need an annualized rate of return of 25.89%.
VII. About margin calls
Suppose you bought 10,000 yuan of a certain currency when it was 10 yuan, and now it has dropped to 5 yuan. You buy another 10,000 yuan. At this time, your cost can be reduced to 6.67 yuan, not 7.5 yuan as you imagined.
8. About Holding Costs
If you have 1 million and invest in a certain currency and make a 10% profit, when you decide to sell, you can keep the chips with a market value of 100,000 yuan, so that your holding cost will be zero, and then you can hold it for a long time without any pressure. If you are very optimistic about this currency and keep the chips with a market value of 200,000 yuan, you will find that your profit will increase from 10% to 100%. But don't be complacent, because if this currency falls by 50% later, you may still lose money.
IX. Asset Portfolio
There is a risk-free asset A (annualized return of 5%) and a risky asset B (return of -20% to -40%). If you have 1 million, you can invest 800,000 yuan in risk-free asset A and 200,000 yuan in risky asset B. In this way, your worst return for the whole year is zero, and the best return may be 12%. This is the prototype of CPPI technology applied to capital preservation funds.

In the current ups and downs of the market, blindly working alone will never bring opportunities. Pay attention to Di Ge, spot, layout timing, strategy, Wu Chang announced

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