SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Shane M who wrote (4887)8/30/1998 8:40:00 PM
From: Joseph G.  Read Replies (2) | Respond to of 78507
 
Spent all night doing arithmetics -g-

Suppose a stock, or index drops 70% peak to bottom, that means somebody who bot at top loses 70% of their money (not counting inflation, taxes, etc).
Q: How much is loss if bot at 15% off the peak?
A: 65% loss.

Repeat for a 89% peak to bottom - A: 88% loss.

Repeat for a 89% peak to bottom, if bot at 25% off peak.
A: 85% loss

Repeat for a 89% peak to bottom, if bot at 50% off peak.
A: 78% loss

Repeat for a 89% peak to bottom, if bot at 70% off peak.
A: 63% loss

Repeat for a 89% peak to bottom, if bot at 85% off peak.
A: 27% loss