Take profit, buy in again investing original amount plus profit Isn't that the same as just leaving the investment there ...except you add Commissions ???
The issue with the 3x funds is that the increased volatility means that their trends are far less certain and can reverse quickly. So one must be more cat-like and pounce on the profit when it becomes available. Hence some of the regulatory concern for people who are unwilling to do so and think one can use these other than on a daily basis as one would a regular ETF.
i.e. Why sell then buy with the same money ??
Why not use AIM and just Bank a portion of the Profits?
That is another option, certainly. One could also just use the same initial amount over and over again also, taking whatever profit and investing it in other things. That would be one way of reducing the risk of these.
The point of this particular exercise is also in part to see if using such volatile items will supercharge the "pay trading" system as well, using a mathematical certainty of going from $2000 to $1,000,000 as previously posted. The same goal as AIM, albeit with a more trade-intensive model and suitable for retirement accounts.
As I mentioned in the post to Cindy, Real Soon Now I hope to test the first month's results through Automatic Investor.
Best,
AIMster
