/biz/ - Business & Finance

So buy or sell?

now I understnad why i lost everythnig

Well % is always being dynamically calculated, so several 1% could be bigger than a 10% and then 5% dump

Just follow the price, don't seek %

>>12803057
me thinks ((they)) invented %s to fuck with our gains

>>12803057
It’s your trade being integrated into the market maker’s order flow.

>>12803057

Thanks fren. Your losses are apreciated.

Just remember: Your loss... is my gain.

>be me
>enter crypto
>Immediately lose 40% on my initial
>make 8,968% gains the next few months
>lose 98% in the next year
>Now currently below my intial

FUCK THE SANDNIGGERS WHO INVENTED THIS SHIT

>>12803163
Like, do they realize how difficult it will be for me to return to my ath?

>>12803171

did you buy altcoins you fucking retarded piece of shit?

>>12803171
Why would they want you to do that?

>>12803057
Has anyone double checked this math?

the absolute state of /biz/‘s IQ

The $1 goes to Bitmex in both cases.

>>12803254
I checked with my big sister and she said it is correct

>>12803318
Wow. How do we change the rules of mathematics?

>>12803057
>start with $100
>10% gain
>$110
>another 10% gain
>$121

WHAT THE FUCK

>>12803057
wtf this cant be real. can some faggot doing a STEM degree or some shit confirm this is actually true?

Biz literally, unironically struggling with third grade level math. Never change biz, never fucking change.

>>12803057
wtf I put this into a calculator and you're right both times
Isn't this illegal?

>>12803442

Keep doing it over and over and the sum gets smaller and smaller.

>>12803057
>start with $100,000
>100% gain
>$1,000,000
>100% loss
>$0
Shit better buy kneepads

>>12803057
Leverage

What the nigger

50% decrease 200> 100
(/2)
100% increase (2x) 100>200

what type of nigger math is this? brainhurt

>>12803057
>start with $100
>$10 gain
>$110
>$11 loss
>$99

>start with $100
>$10 loss
>$90
>$9 gain
>$99

>>12803562
>start with $200
>lose $100
>$100
>gain $100
>$200

what in the absolute state is surprising about this

That's why the #1 rule is to protect capital, the #2 rule is compound interest

what's 9 + 10?

>>12803721
21

>start with $100
>100% gain
>$200
>100% loss
>$0

>start with $100
>1000% gain
>$1100
>100% loss
>$0

>start with $100
>10000% gain
>$10100
>100% loss
>$0

Woah! It turns out the maximum you can lose in this game is 100% but it's possibly to gain 100000% or even more!

>>12803939

yes sir we all have a stoploss at -100%

That's why you use martingale to break that pattern

>>12803939
i might kill myself

>>12803057
Imagine if this wasn't a LARP

>>12803057
Look up volatility drag

This is also why shorting a pair of inverse leveraged ETFs has been a popular strategy. When securities move sideways, volatility drag occurs, which can be amplified by adding leverage. A 3x leveraged ETF will decay way faster than a non-leveraged ETF during consolidation (on the flip side, moves faster during trending period).

Pic related. UGAZ and DGAZ are 3x leveraged inverse ETNs tracking UNG, with UNG remaining unchanged at the end of this period, both UGAZ and DGAZ decayed significantly due to amplified volatility. If you shorted both with equal weight, you would've returned 50+% even with the short interests.

>>12805371
Nigga what are you SAYING

OP is onto something
keep digging

>>12805397
I'm saying that OP just discovered volatility drag, now add 3 times leverage to that you get a even bigger decay:

100*(1+3*10%)*(1-3*10%)=91

>how do I profit from this?
If you're long you're gonna have to take the loss, so you get on the other side of the trade by shorting. Luckily there are tons of inverse leveraged ETF pairs out there, you can short both of them at the same time and profit from the decay from the amplified volatility drag.
>why shorting both them?
that way you can minimize your directional risk, by shorting both legs you essentially hedged your overall position.

Look that pic, with UNG unchanged, UGAZ and DGAZ both lost more than half of their values during that few month, if you're shorting both at the same time, that 50+% decay loss is your profit. BTW this is not some groundbreaking new strategy, it's fairly well known.

https://youtu.be/QYEb4hBS8vY

>>12803171

"Lost" 70%, up 5% now over initial. Thanks LTC!

>>12803163
>lose 98% in the next year

lol

>>12803057
Entropy u mongz