After a 33% drop, a 33% rise still won’t get you back to break-even.
Elice fell below its offering price on its first day of trading, October 20. The 33% figure on the trending list is used here only as an arithmetic example, not as a closing price: if 100 falls by 33%, it becomes 67; if 67 then rises by 33%, it reaches only 89.11. To get from 67 back to 100, it needs to rise by about 49.3%.
A drop and a rise are calculated from different starting amounts, so their percentages cannot simply cancel each other out. The deeper the drop, the larger the rise needed to recover the original value. This isn’t a prediction of how much it might rebound; it’s a reminder that a drawdown changes how difficult the road ahead will be.
When Old Yao trades, he first calculates how a loss would affect his total position, then considers whether to keep taking on risk. “Waiting to break even” is a wish, not a reason to keep holding.
Have you ever calculated how much a position needs to rise after a loss to get back to where it started?
For personal market observations only; this is not investment advice. #韩国7月强制平仓达3442亿韩元
Elice fell below its offering price on its first day of trading, October 20. The 33% figure on the trending list is used here only as an arithmetic example, not as a closing price: if 100 falls by 33%, it becomes 67; if 67 then rises by 33%, it reaches only 89.11. To get from 67 back to 100, it needs to rise by about 49.3%.
A drop and a rise are calculated from different starting amounts, so their percentages cannot simply cancel each other out. The deeper the drop, the larger the rise needed to recover the original value. This isn’t a prediction of how much it might rebound; it’s a reminder that a drawdown changes how difficult the road ahead will be.
When Old Yao trades, he first calculates how a loss would affect his total position, then considers whether to keep taking on risk. “Waiting to break even” is a wish, not a reason to keep holding.
Have you ever calculated how much a position needs to rise after a loss to get back to where it started?
For personal market observations only; this is not investment advice. #韩国7月强制平仓达3442亿韩元