Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG)

[food4thought]

Full disclosure:
I got decimated on the last drop from $100 to $4 so I’m probably not the right guy to ask. I’ve since doubled my money from $4ish but am still severely underwater with this trade.

I’ll tell you what I’m aware of....
Any major gap fill, if you’re a TA guy, or retraction in GDXJ makes JNUG a difficult etf to hold as downward percentages plus decay will not equal similar upside moves. So JNUG is not a good hold unless you firmly believe in a bull move of miners which could benefit in an increase in gold price and low oil as a operating cost savings. Many analysts have recently called for a 3k price in gold by 2021. Miners would clearly benefit from that move. Covid remains a wild card. Global Shutdown affect miners as well, which affects revenues. Many more factors can affect this trade.

Long story short:
If you want to play gold, trade the underlying index of these ETF’s, UGLD, or play a quality individual minor directly. This etf can bury you in a hurry if you’re not vigilant in taking profits. You could clearly miss a big gap up by taking profits but you’ll also avoid the decimation that took place a month ago. All food for thought. Good luck any way you go.