The stock market is not a smooth path of constant growth. It's a road full of dramatic upsand downs, as we've seen in recent decades:
These crises teach us a simple truth: sharp and significant declines are not the exception in the stock market - they are the rule. Every investor needs to be prepared for such periods.
Investors faces several challenges, with two being particularly significant:
In fact, simulations show that if TQQQ had existed during the dot-com bubble, it wouldhave lost 99.95% of its value - almost completely reset. An investment worth $10,000would have become just $5. What are the chances of a $5 investment growing back to$10,000? Almost impossible, even after decades.
The chart illustrates how TQQQ's 3x leverage caused catastrophic losses during the dotcom crash. While QQQ fell 81% and eventually recovered, TQQQ's 3x multiplication o fdaily losses resulted in a devastating 99.95% drawdown – meaning an initial $10,000investment dropped to just $5. Even after decades of market growth, it only managed to recover partially to $2,184, still far from the original investment. This represents a mathematical hole so deep that escaping from it is nearly impossible, even over multiple decades.
Beyond the dry data, there's a psychological trap: most investors cannot emotionally handle drops of 50%, 70%, or 85% in their investment portfolio. The natural response is panic selling at the bottom, turning temporary losses into permanent ones.
AlgozTrade addresses these two problems through:
Imagine two drivers navigating a challenging and winding road – one is driving an old car without safety systems, while the other is in a modern vehicle equipped with advanced stability and control technologies. Both are on the same road, but one drives with confidence and control, while the other takes unnecessary risks.This is the difference between Buy & Hold and AlgozTrade – a strategy that allows you to navigate the market more intelligently and safely, maximizing profit potential while limiting risk.