But in the vastness of the web, I saw a rather amusing question. Something like: - Yesterday the price fell by 10 percent and today it rose by the same 10 percent, so why am I at a loss? If you find it funny and sad at the same time, it means you are a reasonable person and you have, at least, graduated from the 6th grade, so I won't keep you. Otherwise, grab your notebooks and hit yourself on the butt with them, because you should have paid attention in math class. And in the meantime, read while pumping knowledge into yourself, as it doesn’t always come through your head.
A visual task:
Price (let's say $100) and a fixed time period (24 hours) during which it moves!
First day: the price drops by 10%. So $100 - 10% = $90. So far, so clear!
Second day: the price dropped yesterday and now it starts from $90, and the percentage growth now is based on $90! To grow back to the previous $100, those 10% won't be enough, because 10% of $90 = $9! [90$ + 10% ≠ 100]
We now need 11.1…% to break even. [90 + 11.1…% ≈ 100]
And so on in progression. The bigger the drop, the more is needed to return back.
Yesterday the price fell by 50%, so today to return to 0, it will need to grow by 100%.
The price fell by 80%, so it needs to grow by 400%.
And so on…
So pump yourself with knowledge as much as you can. Just don't hurt your butt, you'll need it when you catch liquidation on futures!