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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (187779)	1/5/2015 10:10:24 PM
From: ChrisGillette	Read Replies (1) \| Respond to of 206084

<<Notice with UWTI, you would have lost 92.4% of your capital as the price of oil declined (most of it due to time decay from expenses)>> Thank you for the responses. The UWTI example seems a bit unfair as it's a 3x levered fund (i.e, wouldn't you expect disaster when you're 3x levered and the underlying position's value declines by 50%?) I think I'll avoid leveraged funds as well as individual companies. Too much risk. Just looking for a way to profit from WTI/Brent prices reverting to the mean, which I figure will generate a 50% return in 2-3 years.

To: Elroy Jetson who wrote (187779)	1/5/2015 10:57:14 PM
From: JimisJim	2 Recommendations Recommended By dvdw© isopatch Read Replies (3) \| Respond to of 206084

Yes, leveraged ETFs have always been inappropriate for holding more than a few days -- fewer days are better for these things... about the only way I'd touch one would be for a swing/day trade and even then I'd short a long one to play the downside and short a short one to go long, but that's just a theory because leveraged ETFs are a loooooosing game for the most part, IMO, and I can think of a lot better risk/reward plays depending on the time frame... personally, I'm not trading this sector at all until I see a real bottom put in... as others have said, I don't have to get the absolute bottom (or top when oil booms), but get within 10% of it to play the trend reversal...