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/biz/ - Business & Finance

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8709196 No.8709196 [Reply] [Original]

Shorting once
>Sell at $20000
>Buy at $1
>profit 99%

Shorting multiple times
>Sell at $20000
>Buy at $10000
>profit 50%

>Sell at $10000
>Buy at $5000
>profit 50%

>Sell at $5000
>Buy at $2500
>profit 50%

>Sell at $2500
>Buy at $1250
>profit 50%

>Sell at $1250
>Buy at $625
>profit 50%

>Sell at $625
>Buy at $312.5
>profit 50%

>Sell at $312.5
>Buy at $156.25
>profit 50%

>and so on....

>> No.8709218

>>8709196
buy chainlink pls good sir

>> No.8709234

what the fuck is wrong with the education system

>> No.8709248
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8709248

>>8709196
> buy at 0

>> No.8709256

>>8709196
Think of green cabbage baby from jojo bizzaro adventure part 6

The 50% thing exactly same problem here had when trying approach green cabbage baby

>> No.8709274
File: 41 KB, 800x450, brainlettttt.jpg [View same] [iqdb] [saucenao] [google]
8709274

>>8709234
>Didn't answer the question
>Deflected it and tried to make themselves look smart
Hello fellow brainlet

>> No.8709277

The thing that you're missing is that you're also dropping your liquidation point each time.

>> No.8709289
File: 76 KB, 640x1136, Wat-Meme-Old-Lady-01.jpg [View same] [iqdb] [saucenao] [google]
8709289

>>8709256

>> No.8709304

>>8709277
Please explain with numbers

>> No.8709350

Just buy COSS and stop being a retard

>> No.8709381
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8709381

>>8709350
I just wanted to understand this supposedly simple thing

>> No.8709399

>>8709304
Let's assume that you're shorting with 3x margin, so roughly 50% tolerance to liquidation. Let's also assume that you're reinvesting those profits since judging by the OP you want to take advantage of the compounding return.
>Short at $20000
>liquidation at $30000
>close and reopen at $10000
>liquidation at $15000
>close and reopen at $5000
>liquidation at $7500
You see where I'm going with this. Now where do you stop. How sure can you be that it won't reverse for a multiple week bulltrap? Yes you make more by closing and reopening on the way down but its also riskier.
>close and reopen at

>> No.8709422

>>8709399
Yeah buy why do you get more profits by closing and opening?

>> No.8709463

>>8709399
>>8709422
Is it best to close and reopen every 1% down?

>> No.8709466

>>8709422
Because you're risking a larger amount by adding your leveraged profits to your short.

>> No.8709482

>>8709466
But doesn't it work even if you don't use leverage?

>> No.8709495

>>8709422
You don't you dummy.
Short at 20k buy at $200= 99% return on 20k
Do the dumb thing you suggest gives you a 50% return on 20k, a 50% return on 10k, a 50% return on 5k...

What is a bigger profit:
A 100% return on 100k -or-
A 200% return on 10k?

>> No.8709586

>>8709495
No. You are talking about a % return on the price. I am talking about a % return on my capital.

>> No.8709618

>>8709196
50%*20000+
50%*10000+
50%*5000+
...
50%*1=

99%*20000

You're making the same profit.

>> No.8709661

>>8709618
Not if you are reinvesting the same amount of capital you take out at every closing and opening.

>> No.8709679

>>8709482
It does but you're still adding more risk.
>open short at $20000 for 1 BTC
>close at $10000
>made $10000
>open short at $10000 for 2 BTC
>goes to $20000
>you owe $20000
>if you'd opened and closed at $20000 you would have just broken even
>If you only opened for 1BTC at $10000 then there's 0 difference to just leaving it open all the way down
Its just risk/reward.

>> No.8709739

>>8709679
Thanks.

>> No.8709774

>>8709661
>Shorting once
>Sell at $20000
>Buy at $1
>profit 99%

kek. thats 2000000% profit since its 20,000 times smaller.

>> No.8709867

>>8709774
You're a fucking retard.

>> No.8710074 [DELETED] 

>>8709867
well it's 1000000% profit

>> No.8710251

>>8709867
sorry, it's a 1999900% increase to be exact

>> No.8710317

>>8709774
>>8710251
brainlet

>> No.8710366

>>8710317
wouldn't you call an increase from $1 to 2$ to be a 100% increase?

>> No.8710534

>>8710366
if your shitcoin goes from 2$ to 1$ how much did you lose?

>> No.8710586

>>8710534
he was talking about profits dude, not losses.