1. About Returns

If you have 1 million, when the return reaches 100%, the assets will reach 2 million. If you then lose 50%, it means your assets will return to 1 million. Clearly, losing 50% is much easier than earning 100%.

2. About Price Fluctuations

If you have 1 million, after a 10% increase on the first day, your assets reach 1.1 million, then after a 10% drop on the second day, the remaining assets will be 990,000. Conversely, if you drop 10% one day and then increase 10% the next day, the assets will still be 990,000.

3. About Volatility

If you have 1 million, 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 will be 1.405 million, with an annualized return rate of only 5.83%, which is even lower than the 5-year treasury bond coupon rate.

4. About 1% Daily

If you have 1 million, and you can earn 1% daily and exit, then after 250 days, your assets can reach 12.032 million, and after 500 days, your assets will reach 145 million.

5. About 200% Every Year

If you have 1 million, if you achieve a return rate of 200% continuously for 5 years, then after 5 years, your assets will reach 243 million. However, such high returns are very difficult to sustain.

6. About Ten Times in Ten Years

If you have 1 million and hope to reach 10 million in ten years, 100 million in twenty years, and 1 billion in thirty years, you need to achieve an annualized return rate of 25.89%.

7. About Averaging Down

Assuming you bought a certain cryptocurrency for 10 yuan with 10,000 yuan, and now it has dropped to 5 yuan, you buy another 10,000 yuan. At this time, your average cost can be reduced to 6.67 yuan, not the 7.5 yuan you might think.

8. About Holding Costs

If you have 1 million and invest in a certain cryptocurrency with a profit of 10%, when you decide to sell, you can leave 100,000 yuan in market value as chips, then your holding cost will be zero, and you can hold it long-term without pressure. If you are very optimistic about this cryptocurrency and leave 200,000 yuan in market value as chips, you will find that your profit will rise from 10% to 100%. However, don't be complacent, because if this cryptocurrency drops by 50% later, you may still incur losses.

9. About Asset Allocation

With a risk-free asset A (annual return 5%) and a risky asset B (return -20% to 40%), if you have 1 million, you can invest 800,000 in risk-free asset A and 200,000 in risky asset B, then your worst annual return is to be determined, and the best return can be 12%. This is the CPPI technique applied to capital protection funds.

Still the same saying, bulls have their strategies, bears have their ways of playing.

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