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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (21651)	7/31/2009 3:12:54 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 71423

2x and 3x lose due to structured friction (daily double loses $$$s relative to underlying over time). if the direction and timing are right, you make a bundle. if not, you will likely lose, sometimes quickly and big if you aren't very careful.

To: ggersh who wrote (21651)	7/31/2009 4:44:00 AM
From: axial	Read Replies (1) \| Respond to of 71423

With leveraged ETFs you can make out like a bandit if you're on your toes. Sometimes you can capture an intraday gain of 10% when the market close gain is only 6% (for example). Tuesday was good for 13% in 2x crude bear. They work really well when there's a trend, but volatility is your enemy. --- You gotta watch for rebalancing and contract rollover. I don't use 'em on rollover days. Here's some screen shots from a Horizons BetaPro prospectus: Message 25425115 --- "I never trusted them. there always seemed to be an underlying scheme to them...IMO" Yup. USO has underperformed - can't find the chart, but it's out there. It's unleveraged, but long-term you lose. Good luck! Jim