A small important reminder:
To regain its initial price after a drop, an asset must achieve a percentage increase greater than that of the drop.
Here are some examples to illustrate this principle:
· ➡️ After a drop of 10%, an increase of 11% is necessary to return to breakeven.
· ➡️ After a drop of 30%, an increase of 43% is necessary.
· ➡️ After a drop of 50%, an increase of 100% (i.e., a doubling) is necessary.
· ➡️ After a drop of 70%, an increase of 233% is necessary.
· ➡️ After a drop of 90%, an increase of 900% is necessary.
In summary, the greater the fall, the longer the path to recovery. It is always easier to lose a percentage than to regain it.
To regain its initial price after a drop, an asset must achieve a percentage increase greater than that of the drop.
Here are some examples to illustrate this principle:
· ➡️ After a drop of 10%, an increase of 11% is necessary to return to breakeven.
· ➡️ After a drop of 30%, an increase of 43% is necessary.
· ➡️ After a drop of 50%, an increase of 100% (i.e., a doubling) is necessary.
· ➡️ After a drop of 70%, an increase of 233% is necessary.
· ➡️ After a drop of 90%, an increase of 900% is necessary.
In summary, the greater the fall, the longer the path to recovery. It is always easier to lose a percentage than to regain it.
