Pump's daily trading recs, emphasis on short selling Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: unregmarket who wrote (6306)	2/9/2002 9:20:47 PM
From: XBrit	Read Replies (1) of 6873

Adding to the previous information: It's important to know that some "inverse" funds are best for short-term trading and some are best for medium- to long-term holds. The critical factor is "slippage", i.e. how much the funds fail to inversely track their target indexes over time. The more aggressive (highly-leveraged) funds, such as 2x inverse Naz, have quite bad slippage because they rely on options and other techniques which have high trading and time-premium costs. These funds are only suitable for short-term trading. On the other hand, the less aggressive funds, such as some 1x inverse SP500 funds, track excellently with the inverse index over long periods. These are suitable for medium- to long-term holds. The differences can be huge over a 1-yr period... check out the following table bearforum.com For example, RYURX (1x inverse SP500) has slightly negative slippage per year (because their index-tracking technique involves using very cost-effective derivatives, plus investing cash in a money market fund... so they actually out-perform the inverse index). At the other extreme, USPIX (2x inverse NDX) has 55% per year slippage

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next