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Author Topic: The Higher the capital the higher the returns  (Read 995 times)
Faisal2202
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July 14, 2024, 05:46:39 PM
 #121

Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.
I have read these facts so many times on Instagram reels and on other social media but I spend most of my time on IG nowadays so. When I read it first time I realized bigger capital is indeed can make us more money. And then I also came to remember the saying, money brings more money. But my mind is a bit negative too, so I thought if I could make 500 profit on 1000 dollar investment if it pumps %50 then I could make a $500 lose as well if it dumps 50%. So, the point is, with lesser capital, you are making lesser lose and lesser profits.

But once you increase the capital you are doing it in "more" terms. You say chase more capital not bigger return, I say what if I don't chase bigger returns how can I get more capital. Because some not have alternative source of income.
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July 14, 2024, 08:44:14 PM
 #122

I also believe that having higher capital would help you get a return in the long run. this is also one of the reasons why rich people who have great management skills are getting even richer. They are smart with the money and could really make things better for them and find profit anywhere.
Rich people have the advantage of being able to allocate high business capital without needing to apply for a capital loan from a bank, they can build a business according to initial planning and they can do anything to increase their business income, they have financial support to make their business a success, they even allocate campaign funds for business promotion on top billboards.

However, I agree with your statement that rich people will get richer with their business, I think life is unfair but that is the reality of life, we can also wake up with enough capital to build a business even though the profits are small. We must be consistent in running the business to achieve high profits in the future.

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Zanab247
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July 14, 2024, 09:13:10 PM
 #123

Quote from: Yucky
Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.
When you chase high capital no matter the inflation in your country and invest in a decentralized business or real estate business, what you will get in return will increase you financially in your environment because you have pay the sacrifice to use big capital in the business.

When you go after big profit without increasing your capital in that particular business, it will be hard for you to achieve the profit that will satisfy you because high capital allow investors to achieve their target when the price pump higher in the market. Having different sources of income can also help you to increase your capital because you will see some good business you can invest to increase your source of income, but those that don't have such opportunity to increase their capital always struggle to increase their capital in the land.

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pusaka
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Today at 09:31:21 AM
 #124

I also believe that having higher capital would help you get a return in the long run. this is also one of the reasons why rich people who have great management skills are getting even richer. They are smart with the money and could really make things better for them and find profit anywhere.
Rich people have the advantage of being able to allocate high business capital without needing to apply for a capital loan from a bank, they can build a business according to initial planning and they can do anything to increase their business income, they have financial support to make their business a success, they even allocate campaign funds for business promotion on top billboards.

However, I agree with your statement that rich people will get richer with their business, I think life is unfair but that is the reality of life, we can also wake up with enough capital to build a business even though the profits are small. We must be consistent in running the business to achieve high profits in the future.
Apart from the money they have that can support what they want to do, they also have experience and steps from previous businesses that have brought them success. From this experience, there are many things they will gain, because apart from learning from failure, we also have to learn from success because it will show us a little of the way and what we have to do to be successful.
So far, we often hear someone say "learn from mistakes", but we rarely hear people say "learn from success". Even if you think about it, it's just as important, maybe we haven't experienced success, but we can learn from other people's success. Because currently there are many people sharing their experiences, yes, although sometimes there are some of them who I don't agree with because they have different privileges.

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jaberwock
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Today at 05:06:24 PM
 #125

I think that rich people pay attention to absolute numbers as well, as to the percentage. And sometimes they are more interested in getting the percentage because it is attractive and quite large. But sometimes they really agree to a low percentage, about 1-3, but with their initial investment the return is quite high. It all depends on their risk management strategy.
I agree, they are great at measuring the risk that they're taking and whether the numbers are high or low as long as they get decent returns. That's what all matters to them. There are conservative investors that even the return would definitely be too low for them, it won't matter as long as they're safe and low risk. We won't go and say about guaranteed profits but it's safer to say that there's lesser and low risk that they'll choose and that's how many of them assess risks that they're taking.
It is not even just about measuring risk, it's about calculating risk/reward ratio correctly. If you have 50% chance of making 1 million dollars when you bet 10 dollars on something, you would bet on it won't you? Everyone would, worst case you lose ten bucks, best case you win a million dollars. But reverse it, and if you could make 10 dollars with a 50% chance if you bet 1 million dollars, would you then do it? Of course not, that would not make sense at all. Now what is the middleground and reasonable place? What is the % in any situation?

We do not know that and we can't possibly know it, but at the same time we are talking about something that will take a while, and we should be considering the fact that it is not going to be what we know, yet whales do know it.

Bitstar_coin
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Today at 07:56:53 PM
 #126

This is very true and exactly what is happening in the airdrop space nowadays. If you look at all tye point system projects who has already airdroped to users, you will discover that those who are at the top 10 for example have tye highest points and as such earned the bigger portion of the airdrop percent.
The more money you suppl in a pool, the bigger will be your airdrop reward. Same thing applies to investment, the more tye merrier.
Reason why the rich will always get richer because they have the capital to invest heavily.

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Today at 08:26:03 PM
 #127

If I base it on the traditional way of doing business, it is true that when you have a large amount of fund capital that will be allocated to the business, there is a high chance that we will get a profit from it, but the chances that we will lose money are also high, or the risk is high too.

At the same time, when it is small capital, it is always a small risk, and with small capital, you expect profit to be small, but when it comes to crypto business, it is not like that because your small capital here in crypto or business can be multiplied. of 100x up to 1000x or more.

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Today at 10:03:17 PM
 #128

I think that rich people pay attention to absolute numbers as well, as to the percentage. And sometimes they are more interested in getting the percentage because it is attractive and quite large. But sometimes they really agree to a low percentage, about 1-3, but with their initial investment the return is quite high. It all depends on their risk management strategy.
I agree, they are great at measuring the risk that they're taking and whether the numbers are high or low as long as they get decent returns. That's what all matters to them. There are conservative investors that even the return would definitely be too low for them, it won't matter as long as they're safe and low risk. We won't go and say about guaranteed profits but it's safer to say that there's lesser and low risk that they'll choose and that's how many of them assess risks that they're taking.
It is not even just about measuring risk, it's about calculating risk/reward ratio correctly.
Yeah, that's called risk management and mitigation.

If you have 50% chance of making 1 million dollars when you bet 10 dollars on something, you would bet on it won't you? Everyone would, worst case you lose ten bucks, best case you win a million dollars. But reverse it, and if you could make 10 dollars with a 50% chance if you bet 1 million dollars, would you then do it? Of course not, that would not make sense at all. Now what is the middleground and reasonable place? What is the % in any situation?
We're good at taking a risk with small amounts and the potential of having larger rewards. It's the same with investing in Bitcoin several years ago, the risk is quite high and you're not obliged to invest with a large amount. But the others defied that fear and took the risk with bigger sums of capital and now, those who have held and are patient are raking in the results of that risk because of their bravery.

We do not know that and we can't possibly know it, but at the same time we are talking about something that will take a while, and we should be considering the fact that it is not going to be what we know, yet whales do know it.
Whales have got an idea because they can afford to invest with larger capital. Whilst for most commoners like me and probably you, we're actually taking the risk as it seems going to be a gamble if we have little knowledge about it and that's why in general as an investor, we need to know what we're dealing with.

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