Quote:
Originally Posted by DAVES
THE MATH
I just looked 9/13/22 market has closed. The S&P is down 4.32.
Assuming you had 10,000in an S&P index fund, a commonly used number for explanation.
10,000-4.32%=9568 9568+5%=10046. What you need to be whole
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Except that the market is still higher than 9/6, 7 day ago? so in reality, you only lost the prior 4 days of gain, so in reality just really close points in time of a bunch of ups and down in that example. so in reality, its all about how far down you are from the peak, where you should have been 0 % invested in equity
which is why you buy low and sell some or all when you have lots more than say 20% annual gain in any equity. . . that way you keep your gains, and money compounds very well at 20%
stock market candles guy