The chart below is quite interesting, and also quite harsh. Many people believe that losses and profits are symmetrical, but the reality is quite the opposite. Losses are not linear, and recovering losses is exponentially difficult. The deeper the fall, the more it's not a matter of effort anymore; it's a matter of percentages—the numbers aren't on your side. As shown in the chart, a stop-loss of -20% or less generally offers the best return. A -30% drop requires a 43% rebound; the greater the drop, the higher the percentage rebound. There's an even more interesting comparison. Suppose you have 1 million, and there are two profit paths: 1. 5% compound interest annually for 3 consecutive years. 2. +50% in the first year, +50% in the second year, -50% in the third year. The second seems more exciting, but careful calculation reveals that the path of a steady 5% return actually yields more in the end. Often, what truly differentiates us is who earns the most, but who avoids a fatal drawdown. #Crypto Market Watch $BTC {future}(BTCUSDT) $ETH {future}(ETHUSDT) $SOL {future}(SOLUSDT)
Risk and Disclaimer:The content shared by the author represents only their personal views and does not reflect the position of CoinWorldNet (币界网). CoinWorldNet does not guarantee the truthfulness, accuracy, or originality of the content. This article does not constitute an offer, solicitation, invitation, recommendation, or advice to buy or sell any investment products or make any investment decisions
No Comments
edit
comment
collection28
like28
share