Ride the Tiger with CD 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 : Ride the Tiger with CD

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Cogito Ergo Sum who wrote (208853)	1/2/2012 10:10:32 PM
From: SwampDogg	2 Recommendations Read Replies (2) of 312825

In theory that is the case but something to keep in mind is that the leveraged bear ETFs are 2x/3x the negative return and this can be brutal at the end of runs as you are working off a smaller and smaller number on the underlying (eg with ngas trading under $3.00 a move to $2.50 has could be as much as a 50% move higher in the bear ETF). The end of these moves is actually where most of the gains are (see FAZ in 2008). You could get killed. If one shorts a silver bear and silver goes to $19 over 6 months, one might see a 100% loss. This is 3x the US financials. Better to just leave this stuff alone. Shorting anything means unlimited loss potential. stockcharts.com IMO the leveraged ETFs should be banned outright as they lead to a lot of volatility.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next