First, about the return, suppose you have 1 million yuan, and when the return reaches 100%, your assets will reach 2 million yuan. If you lose 50% next, it means that your assets will return to 1 million yuan. Obviously, it is much easier to lose 50% than to earn 100%.
Second, regarding the rise and fall, if you have 1 million yuan, your assets will reach 1.1 million yuan after a 10% rise on the first day, and then fall 10% on the second day, and your assets will remain at 990,000 yuan. On the contrary, if it falls 10% on the first day and rises 10% on the second day, your assets will still be 990,000 yuan.
3. Regarding volatility, if you have 1 million yuan, you 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 1.405 million yuan, and the annualized rate of return over six years is only 5.83%, which is even lower than the face value interest rate of 5-year bearer treasury bonds.
Fourth, about 1% per day, if you have 1 million yuan, if you leave the market when you can earn 1% every day, then after 250 days, your assets can reach 1203.2 million yuan, and after 500 days, your assets will reach 145 million yuan. Fifth, about 200% per year, if you have 1 million yuan, if the return rate reaches 200% for 5 consecutive years, then after 5 years, your assets will reach 243 million yuan, but this high return is difficult to sustain.
6. About 10 times in ten years. If you have 1 million yuan and hope to reach 10 million yuan in ten years, 100 million yuan in twenty years, and 1 billion yuan in thirty years, then you need to achieve an annualized rate of return of 25.89.
7. About covering a position, suppose you bought 10,000 yuan of a certain currency when it was 10 yuan, and now it has dropped to 5 yuan. You buy 10,000 yuan again, then the cost of the currency you hold can be reduced to 6.67 yuan, not 7.5 yuan as you imagined.
8. About holding costs If you have 1 million yuan and invest in a certain currency and make a profit of 10%, when you decide to sell, you can leave 100,000 yuan worth of chips, then your holding costs will be zero, and you can hold it for a long time without any pressure. If you are extremely optimistic about this currency and leave 200,000 yuan worth of chips, you will find that your profit will increase from 10% to 100%, but don't be complacent, because if the currency falls by 50% later, you may still lose money.
