Gentle Reminder That After 50% Loss, You’ll Need 100% Gain To Breakeven. Similarly, 90% Loss Needs 900% To Breakeven!
1 min read
Many people here don’t seem to understand when they say it dropped 20% yesterday and fully recovered the next day with 20% gain. No, it’s not. The market is asymmetric. After a 20% loss, you need 25% gain to get breakeven. It gets exponentially worse as you lose more % too.
10% loss needs 11% gain.
50% loss needs 100% gain.
80% loss needs 500% gain.
90% loss needs 900% gain.
And after 90% it gets even worse; 99% loss needs 9,800% gain to break even.
The market is asymmetrical.
Keep that in mind.
submitted by /u/Neotoric
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