Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
topbitcoin
on 18/07/2024, 18:17:03 UTC
Then this will go back to what the profit target is in its representation, is the percentage or the amount of money you want to get.
I strongly agree with it that we are not looking for a hundred-fold multiplier to get a very large multiplication of money if the capital is large, we will get a large profit if our capital is also large even if the percentage increase is small and that's how it works very well in investing rather than focusing on a high percentage increase.
The basic mathematical formula for calculating profit and loss has not changed. People who have studied accounting can understand it well, although we do not deny that there are other ways to find the multiplication between large capital and the desired profit.
20% profit from large capital is not small compared to 50% profit from small capital.
Economists are very smart in calculating everything related to opportunities and risks, challenges and threats that will occur in the activities they will carry out.
I agree with that, because if we talk about capital gain it will really work, and as well as the same staking, 7% as far as I know with a very large amount of money will also get a big reward.

 When talking about calculations, in my opinion, it is quite logical and there is no problem, but what is a fear is when a person who does not understand his own finances and investor fundamentals, I do not violate what is rounded up in the percentage calculation.

The fear is that it is consumed by early investors who don't even understand risk you reward management in the first step, they focus on increasing the amount of money to be invested but they don't understand that the risk looms over them as well as the profit they want to get.