Silicon Investor (SI) -- The First Internet Community

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 : KEEP IT SIMPLE TRADING / Profunds -- Ignore unavailable to you. Want to Upgrade?

To: J D B who wrote (73)	2/10/2004 9:14:03 AM
From: mistermj	Read Replies (1) \| Respond to of 177

How do you like Scottrade for everything else? Regarding the leveraged funds, any volitility causes a rapid decay in principal. Its hard to get people to understand that concept sometimes. I still see people try to use them for longer holds. They are meant to try to match their respective indexes DAILY but that doesn't correspond over time because of the decay. I've used the leveraged funds for shorting in an IRA. I would keep a leveraged short position with one of the index funds and then use an ETF to balance out the position when I wanted to go neutral.I could then go short intraday in my IRA if I wanted to.Its rather crude but it does work if done right.