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It can also lose 20x. Losses hurt more than gains feel good. Utility theory suggests to sell if probability weighting of loss is high enough.
by alexcnwy 9y ago
It can also lose 20x. Losses hurt more than gains feel good. Utility theory suggests to sell if probability weighting of loss is high enough.
- vesrah 9y agoHow? If the value goes to 0 you lose 1x, not 20x.
- diab0lic 9y agoIt can become worth 1/20 of it's original value.
- qsucvatz 9y agoGoing to $0 is -Inf% loss.
- oscilloscope 9y agoThen if I lose 100% of my investment, how much have I lost?
- kamaal 9y agoEverything. Sometimes its easier to describe this in terms of words, than numbers and symbols.
- icebraining 9y agoEverything is not that bad. Many people lose more than that on the regular stock market (using leverage).
- hervature 9y agoUsually there is margin liquadation levels that are in place so you can't lose ore than 100%.