Because I know that many, due to not delving into it, mislead themselves and think that a 20% growth equals a 20% decline from those values.
It doesn't work that way.
For example, if a coin costs $1 and it shows a 50% increase, the coin's price would be $1.5, and then, for example, it pulls back and the coin falls by 50%, but it does not return to the price of $1, instead it decreases to a price of $0.75, meaning it becomes lower than the purchase price.
Accordingly, the coin only needs to pull back by 30% for a 50% increase to become pointless. This works for any percentages: 10, 20, 30, 50, etc.
Now let's say the coin doubled, the coin was worth $1 and showed a 100% increase, its price after the growth is $2, but just a 50% pullback is enough for the price to return from $2 to $1, while a decline from $2 to 90% would give a price of $0.2. Please understand and remember this, or better yet, recalculate it on a calculator so this understanding gets ingrained in your mind.
This is a hidden trick that needs to be understood and seen.
An equal percentage pullback after growth results in a loss from the purchase price.
These are the basics that seem obvious but are not discussed anywhere by anyone, they get lost from sight, and a person, not paying attention to such a detail, remains in constant delusion.
It may be obvious to many, but since I wrote this post, it means that some people will find this basic information useful.
Closed club - $