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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: TWICK who wrote (8087)	7/8/2001 6:10:07 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 19219

Twick; A word of caution first..Leveraged index funds use futures and options to minic an index some of them at 2X , however they are not as easy to play as they might look. Most people who get into them do not come out ahead and that's a fact so you better be dam sharp and also have the nerve of a cat burgler if you get into them. There are several fund families that deal in them, Rydex , Profunds, and Potomac are the 3 best known. Remember I said that while I do trade them ( once in a while ) I don't recommend these and particularly I don't recommend them to any one who thinks they have to be short or long the market ,( married to it ) if you don't have a make up that lets you step aside and stay cash until you see real good odds these things will eat you alive. I know some really smart people who have lost big time playing them, as they got married to em , they are only good for a quick date and then not to often. Where as if you just play the QQQ or SPY until your good at them you won't get hurt to bad, or at least not as bad. So be damm sure you can scalp the straight out index 80% of the time before you do any leveraged stuff. I don't mean on paper either I mean with hard dollars as I haven't found any one who don't trade better on paper than they do once they get in the soup, and taht includes me. :-) Jim