Curtid33 posted: Anyone can read the drastic difference between gain and absolute gain and put 2 and 2 together smh
Yes, very easy, E.g I deposit €5000 and make €5000, then gain and absolute gain = 100%. Now, i then make another €5000 deposit, so account now €15,000. Gain remains at 100%, absolute gain goes down to 50%. (because i have made €5000 and invested total €10,000) Inversely, absolute gain should increase If i deducted the €5000 profit.
In effect, it can be case that gain is 100% and abs,gain can be 1%, if I make a 1K deposit, double it to 2k and add 100k, then abs.gain only is 1%.
So, it moves up and down with deposit and withdrawals. That our best understanding of it.
We can prove this week by making a withdrawal and you will see the abs. gain rise dramatically.
On the one hand, I understand that modern conditions require modern solutions. On the other hand it is always difficult for me to think that I can deprive my capital of control and simply trust some passive system. I always have a question - what to do if it does not work?