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About trading 3X leveraged ETF's....these are not buy

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Sonic Boom Member Level  Thursday, 01/01/15 01:38:01 PM
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About trading 3X leveraged ETF's....these are not buy and hold strategies. Leveraged ETF's are for people that understand proper entry and exit strategies. With leveraged ETF's, profits can be made in any Bull or Bear market condition. These need to be watched daily (at minimum). Stock Charts are a fantastic tool for understanding entry and exit strategies. A basic chart has been posted on the Intro page.

This may seem to be too good to be true, so here is the catch. These funds are designed to decay over a structured period of time. The goal is get in and out within short periods of time so you can lock in profits. If you buy and hold a Leveraged ETF for a long period of time, YOU WILL LOOSE YOUR MONEY!!!

For example, if you enter and exit $SPXS with a profit (over a period of a a few short weeks), the short term profit you likey earned should overshadow the short term rate of decay. At this point, you may want to consider entering the Inverse $SPXL, you will be entering this at the current decayed value. Once market conditions reverse again, it's time lock in profit and exit $SPXL and enter $SPXS.


Any comments I make represent my opinions only. My opinions are based on facts I am aware of at the present time. As facts change (as they often do), so do my opinions.
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