A Must-Read for Trading Newbies!

1. About Income
Assuming you have 100W, when the profit reaches 100%, the assets will reach 200W. If the next loss is 50%, it means your assets will return to 100W. Obviously, losing 50% is much easier than earning 100%.
2. About Price Fluctuations
If you have 1 million yuan, your assets will reach 1.1 million yuan after a 10% rise on the first day, and then it will be reduced to 990,000 yuan after a 10% fall on the second day. Conversely, if there is a 10% fall on the first day, followed by a 10% rise on the second day, your assets will still be 990,000 yuan.
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 are 140.5W, and the annualized rate of return over six years is only 5.83%, even lower than the face Intrerest Rate of the 5-year certificate-type 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, and after 500 days, your assets will reach 1.45 billion.
Five, about 200% per year
If you have 1 million yuan and earn a return of 200% for five consecutive years, your assets will reach 243 million yuan after five years. However, such high returns are difficult to sustain.
Six, about ten times in ten years.
If you have 1 million and want to reach 10 million in 10 years, 100 million in 20 years, and 1 billion in 30 years, then you need to achieve an Annual Percentage Rate of 25.89.
7. About Margin Replenishment
Assuming you bought 10,000 yuan worth of a currency when it was at 10 yuan, and it has now dropped to 5 yuan. If you buy another 10,000 yuan at this time, the cost of holding in your hand can be reduced to 6.67 yuan, not the 7.5 yuan you imagine.
8. Regarding Holding Cost
If you have 1 million, and invest in a coin that yields 10% profit, when you decide to sell, you can keep 100,000 yuan worth of market capitalization chips, which will reduce your holding cost to zero. Then you can hold it long-term without any pressure. If you are extremely optimistic about this coin and keep 200,000 yuan worth 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 incur losses.
9. About Asset Portfolio
With or without risk asset A (annual yield 5%) and risk asset B (yield -20% to -40%), if you have 1 million RMB, you can invest 800,000 RMB in risk-free asset A and 200,000 RMB in risk asset B. Therefore, your worst annual return may be, and the best return could be 12%. This is the embryonic form of the CPP technology applied to the principal-protected base.#BTC