Thank you Bob,
I like playing the 3x leveraged ETF's because if you hit the trend right you can make a lot of money in a fairly short time.
The trick is, as you say, to read the chart(s), with your favourite indicator (for example the Macd) and go for the ride.
However, once the chart turns negative, you gotta bail... just like you would on any stock or security.
I also like playing the 3x ETF's because it mitigates the risk of bad overnight news sinking a company that you own shares in. (I've seen that & been part of that too many times, ie: Nortel, Enron... I pick the good ones <ng> etc).
Playing the short side with the inverse leveraged ETF's can also be very rewarding. However, only play the trend if one presents itself otherwise the decay on those things can very, very dicey. (Same goes with the 3x long ETF's... play a trend only- unless of course your very nimble and are able to play off 60 minute or 15 minute charts...)
Someone, somewhere on SI suggested that playing the 3x inverse ETF's is like playing with an ice cube. Everyday there is slippage and considerable melt, and the ice cube gets smaller & smaller.... well, you get the point.
You probably already know that since you use options in your work... |
