Posted By:
slacks<< A 10% profit in a week is way better than waiting a year to wring out a full retail 50% profit (10% in a week is equivalent to an annual 520% gain).>>
Not necessarily. It's about opportunity cost. The question should be, if you cash in your 10% after a week, what are you going to do with the money? Put it in the bank at 3%? Pay down your mortgage at 6%? Buy a new pair of shoes? Who says you can repeat that deal every week for a year?
Unless you have another investment that can earn nearly 40% annually (let me know, by the way, I want in), then you are way better off keeping your money in a 50% per annum investment than liquiding after a week for 10%.
slacks