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Re: Joe know post# 85044

Thursday, 01/12/2012 10:01:00 AM

Thursday, January 12, 2012 10:01:00 AM

Post# of 173212
"I am gambling cash that wasn't mine to begine with so if I lose it meh lol that was your cash or who ever sold maybe otr ;) my initial gambling capital is safely out."

If I may.

Interesting concept you muse. Can we apply a simple empirical logic quotient to this idea?, i'm interested in what we may uncover together.

Firstly, can we suppose the initial LBSR capital deployed is actual risk capital?... for example $100.00

A secondary risk capital deployment with a mixture reflective of realized protible flippinG strategies, cuulmanating into an additonal capital realized of deployed totalling $200.00

A third deployment of $200 at an even more capitally effecient price/profit levels...in whatever prudent ratio from positive profitbality of flipping activities, all the while in enjoyment of a steady continuance of postive appreciations of capital, totalling $200.00.

So,into the cauldron of LBSR investment a totality of $1,000, reflective of the out of pocket intial risk capital, and positive results of flipping activities.

MR. LBSR investor claims, he has only risked out of pocket $500.00 in total, and has sold his position to "recoup" said cost.

He has now decided to let the remainig $500 ride, since it's free gambling money.

However, the curious thing to me, is to now explain logically, this curious concept of "risk capital", verses "free capital".

Isn't it more logical to accept that he has risked 500, taken profits, but is still risking 500 as a continuance of his own risk capital? if the so called free capital dissipates, then not only has he realized no real profit, he has also actuallized a real loss, accounting for the hidden cost "opportunity costs?

The idea of free capital appears to be an oxymoron, since a gain was realized, such gain is now owned by the person who realized it, and automatically becomes their new risk total capital to gamble with? It is not somone else money per se, it's really now yours.

For simplicity's sake, isn't all capital realized, whether intitally deployed, or continually recovered... all become your risk capital continually realized?

I sense this could be a case of Polyphemus blinded, to not logically conclude the wayward concept of separation of capital deployed/risked as not one in the same?

My granny used to give me a few dollars for my birth day, I always considered that truly, free capital.

I look forward to your most excellent clarifications on this concept your are alluding to.

GO LBSR

TIA

Everything I say,is only my opinion. DO not rely on anything I post,as buy or sell advice. DO your own homework.

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