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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: yard_man who wrote (195569)4/2/2024 1:18:48 PM
From: GROUND ZERO™1 Recommendation

Recommended By
yard_man

  Respond to of 218931
 
That's exactly right!!!

The important component of this strategy is to be sure you hold enough downside insurance so you don't lose any money...

And then, when the markets finally turn, you close out your insurance, or some of it or most of it, whatever you feel comfortable with, and take those profits and enjoy the ride upward...

It's so easy, even a caveman can do it...



GZ



To: yard_man who wrote (195569)4/2/2024 1:24:22 PM
From: GROUND ZERO™2 Recommendations

Recommended By
Catfish16
toccodolce

  Read Replies (2) | Respond to of 218931
 
The best downside insurance is to short the 1X instrument of the 3X instrument that you buy...

So, if you buy the TNA, then short enough of the IWM to protect the downside...

If these markets crash, then you'll actually make money as it goes down and when these markets turn upward then you also make money with the exact same spread as the market rallies...

The reason this spread works is because the 1X moves up and down at the same rate of speed regardless of direction...

The 3X accelerates as it move higher and it decelerates as it move lower, so either way you make money...

How simple can it get???

GZ