The Wolf Den #276 - All Losses Are Not Created Equal
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COAll losses are not created equal. There is a vast difference between recovering the value of an asset that has dropped 90% vs. one that has shed 99% of its price. Recovering from both is a long road, but the journey back from 99% is 10x harder than from 90%. Let’s take a $100 stock for example. If the $100 stock fell to the respective amounts above, it would be worth $10, $5, and $1. The positions of their bottoms may not seem far apart, but their roads to recovery are vastly different, with each subsequent one being exponentially harder. For the stock that dropped to $10 to recover its lost value, it needs a 1,000% gain. For the $5 and $1 they need a 2,000% and 10,000% gain respectively. Bitcoin’s drop from ≈$64,600 to ≈$29,300 constituted about a 55% drop. But a 55% move upwards won’t bring Bitcoin right back to its all-time high - it actually needs about a 120% increase from the low. From Ethereum’s high of about $4,330 to its low of $1,730, it experienced a 60% drop, needing a 150% increase from its low. Ethereum only dropped 5% more from its high than Bitcoin but needs 30% more growth to recover from low to high. Using this formula, you can now sees how some of the alts that recently lost 60%, 70%, or +80% of their value have a much steeper hill to climb. To counteract this there are a couple of measures you can take. One is obviously just holding Bitcoin because it tends to be less volatile than other altcoins on the market and has historically always recovered. If you are into altcoins, keep cash on hand to buy the bottoms, although knowing where that bottom is is impossible. Cash is king in a portfolio during a correction. If you believe the coin will return to its all-time high, then now could be a chance to capitalize on some stronger gains on its way back up.Keep in mind again that the deeper the drop, the more difficult the climb back up, because there is more distance to cover. Ethereum’s climb has 1.25x the distance to cover vs. Bitcoin's. This “difficulty” measure only considers the extra distance in recovering, so it’s limited in its application and is not a holistic understanding.Regardless how far any asset has dropped, assuming the price is not zero, it can always drop further. Keep this in mind when buying dips or considering exits.If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!In This Issue:All Losses Are Not Created EqualBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsStock Splits 101How Bitcoin Can Help The PoorBitcoin For The PeopleRobinhood Pays The Price For CheatingSoros' Fund Trading BitcoinThe Wolf Of All Streets Podcast Ft. Lyn AldenMy Recommended Platforms And Tools
The Wolf Den #276 - All Losses Are Not Created Equal
The Wolf Den #276 - All Losses Are Not…
The Wolf Den #276 - All Losses Are Not Created Equal
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COAll losses are not created equal. There is a vast difference between recovering the value of an asset that has dropped 90% vs. one that has shed 99% of its price. Recovering from both is a long road, but the journey back from 99% is 10x harder than from 90%. Let’s take a $100 stock for example. If the $100 stock fell to the respective amounts above, it would be worth $10, $5, and $1. The positions of their bottoms may not seem far apart, but their roads to recovery are vastly different, with each subsequent one being exponentially harder. For the stock that dropped to $10 to recover its lost value, it needs a 1,000% gain. For the $5 and $1 they need a 2,000% and 10,000% gain respectively. Bitcoin’s drop from ≈$64,600 to ≈$29,300 constituted about a 55% drop. But a 55% move upwards won’t bring Bitcoin right back to its all-time high - it actually needs about a 120% increase from the low. From Ethereum’s high of about $4,330 to its low of $1,730, it experienced a 60% drop, needing a 150% increase from its low. Ethereum only dropped 5% more from its high than Bitcoin but needs 30% more growth to recover from low to high. Using this formula, you can now sees how some of the alts that recently lost 60%, 70%, or +80% of their value have a much steeper hill to climb. To counteract this there are a couple of measures you can take. One is obviously just holding Bitcoin because it tends to be less volatile than other altcoins on the market and has historically always recovered. If you are into altcoins, keep cash on hand to buy the bottoms, although knowing where that bottom is is impossible. Cash is king in a portfolio during a correction. If you believe the coin will return to its all-time high, then now could be a chance to capitalize on some stronger gains on its way back up.Keep in mind again that the deeper the drop, the more difficult the climb back up, because there is more distance to cover. Ethereum’s climb has 1.25x the distance to cover vs. Bitcoin's. This “difficulty” measure only considers the extra distance in recovering, so it’s limited in its application and is not a holistic understanding.Regardless how far any asset has dropped, assuming the price is not zero, it can always drop further. Keep this in mind when buying dips or considering exits.If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!In This Issue:All Losses Are Not Created EqualBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsStock Splits 101How Bitcoin Can Help The PoorBitcoin For The PeopleRobinhood Pays The Price For CheatingSoros' Fund Trading BitcoinThe Wolf Of All Streets Podcast Ft. Lyn AldenMy Recommended Platforms And Tools