Hi Jack,
I have been away for a few days, so I am a little late in responding to you. Got a total knee replacement. Quite an experience for this old man. Thank goodness I have a great wife who keeps up with when I am supposed take my next med and tells me when my next doctor appointment is.
You have begun using the 2X and 3X ETFs the same way I have used them in the past. For short term trading profits. Not long term holdings as one normally associates when using AIM.
btw, don't know how many here use Point & Figure charts for your entry and exit points when doing short-term trading. I have used them in the past, but have not relied too heavily because, up until now, I have used the Traditional box size or the percentage box size for determining entry and exit points. However, just before I went into the hospital, I discovered that at StockCharts you can draw your PnF charts using the stock or fund's ATR (Average True Range) for your box size. Using ATR box sizes for 2X, or even 3X, ETFs makes me feel more comfortable going into a short term trade and more comfortable with determining the stop loss box points. This way, when using ATR charts, you use the stock's own volatility to determine its reversal point box size instead of the "one size fits all", as would be the case for traditional box or percentage box charts.
Would like to point out, before some one else points it out to me, that using volatile investments, such as 2X and 3X ETFs, stop-loss orders, etc. for short-term trading is not the way that one should AIM their investments and I totally agree. As I have pointed out here several times in the past, that my ventures into these leveraged investments is only with a small percentage of my investments...my "play money", so to speak.
Best regards,
Ray
AI
