Re: Several Hotshots Supposedly Broke Or In Debt
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Huh? 87.4% equity of $5000 is $4370!!!!
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I'm pretty sure you're doing it wrong. You take the equity you have on the whole $10K and subtract by the amount you put in. In this case its $8,740 - $5K = $3740.
Your EV would be $4,370 if you got your money back the times you lose. You are failing to factor in the loss of $5K 12.6% of the time. This is the $630 you are forgetting to subtract from your $4,370 figure.
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