Friendly Reminder of The Math of Gains And Losses: After a 69%, You Would Need 222.5

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Friendly Reminder of The Math of Gains And Losses: After a 69%, You Would Need 222.5

<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/11n0799/friendly_reminder_of_the_math_of_gains_and_losses/"> <img src="https://b.thumbs.redditmedia.com/0f13rFSWow5w7X_6DsXGr4u86uVS9FqDuGIOqSg-nDM.jpg" alt="Friendly Reminder of The Math of Gains And Losses: After a 69%, You Would Need 222.58% Gain To Even" title="Friendly Reminder of The Math of Gains And Losses: After a 69%, You Would Need 222.58% Gain To Even" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>A lot of people doesn't know or forgets (I include myself) the importance of knowing about The Math of Gains And Loses.</p> <p>We use to think that when an investment drops 50%, we would need just 50% up to get even but that is incorrect. We would need 100% gain to make even.</p> <p>In this table you can see how much you would need to get even depending on the % loss:</p> <table><thead> <tr> <th align="left">Initial balance</th> <th align="left">Percentage loss</th> <th align="left">Balance after loss</th> <th align="left">Need percentage gain to restore loss</th> <th align="left">Ending balance after gain</th> </tr> </thead><tbody> <tr> <td align="left">$1,000</td> <td align="left">-5%</td> <td align="left">$950</td> <td align="left">5.26%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-10%</td> <td align="left">$900</td> <td align="left">11.11%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-15%</td> <td align="left">$850</td> <td align="left">17.65%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-20%</td> <td align="left">$800</td> <td align="left">25.00%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-25%</td> <td align="left">$750</td> <td align="left">33.33%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-30%</td> <td align="left">$700</td> <td align="left">42.86%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-35%</td> <td align="left">$650</td> <td align="left">53.85%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-40%</td> <td align="left">$600</td> <td align="left">66.67%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-45%</td> <td align="left">$550</td> <td align="left">81.82%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-50%</td> <td align="left">$500</td> <td align="left">100.00%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-55%</td> <td align="left">$450</td> <td align="left">122.22%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-60%</td> <td align="left">$400</td> <td align="left">150.00%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-65%</td> <td align="left">$350</td> <td align="left">185.71%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-70%</td> <td align="left">$300</td> <td align="left">233.33%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-75%</td> <td align="left">$250</td> <td align="left">300.00%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-80%</td> <td align="left">$200</td> <td align="left">400.00%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-85%</td> <td align="left">$150</td> <td align="left">566.67%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-90%</td> <td align="left">$100</td> <td align="left">900.00%</td> <td align="left">$1,000</td> </tr> <tr> <td align="left">$1,000</td> <td align="left">-95%</td> <td align="left">$50</td> <td align="left">1900.00%</td> <td align="left">$1,000</td> </tr> </tbody></table> <p>&#x200B;</p> <p><a href="https://preview.redd.it/n3dh5abbdrma1.png?width=1081&amp;format=png&amp;auto=webp&amp;s=107b48249895157bd6899273ee53b9e05ca7edfa">Recovery Percentages chart</a></p> <p>You can easily calculate it with this formula:</p> <pre><code>Needed % gain to restore loss = [1 / (1 - % Loss)] - 1 </code></pre> <p>For example, the needed gain to restore a 10% loss can be expressed as:</p> <pre><code> [1 / (1 - .10)] - 1 = .1111 or 11.11% </code></pre> <p>I know that you are going to hate me for messing up the party but I had to bring some perspective to you.</p> <p>I hope it helps you to have more perspective about gains and losses and see why it is important to DCA down or even sell projects that you don't have faith in.</p> <p>Thanks for reading my post and I hope you learned something and enjoyed it.</p> <p>See you!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/kirtash93"> /u/kirtash93 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/11n0799/friendly_reminder_of_the_math_of_gains_and_losses/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/11n0799/friendly_reminder_of_the_math_of_gains_and_losses/">[comments]</a></span> </td></tr></table>