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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Boolish who wrote (208826)	1/1/2012 10:05:45 PM
From: Veteran98	Respond to of 313046

Good point as in actuality it probably would have been better off to be in HND as you would have had an almost 300% return.. Leveraged ETF's are great in the long term only when you get a rare long lasting trend like NG with little volatility which doesn't happen very often. Straight down or straight up doesn't happen very often. In retrospect I read the same as what you have about the leveraged ETF's and it refers more to what is the normal case which is a up and down and sideways movement where the natural deterioration whittles away any advantage you have even if you are correct about the trend. The deterioration factor makes shorting the ETF like having an edge on the house at the casino, so even if you make a wrong bet you get the edge when rebalancing due to the the up and down volatility fritters away value... There was quite a debate a while back on BNN and what's his name from Horizon had to come on to defend the HOU/HOD ETF's... At the end of the day you still have to be right or wrong on the trend but the deterioration factor gives the edge to shorting....