Direxion Daily Gold Miners Bull 2X (NUGT)

[silver100]

From http://seekingalpha.com/instablog/659186-monty-spivak/1251931-gold-bullion-etfs-closed-end-funds-or-gold-mining-stocks-follow-up-on-cef-gtu-gdx-nugt

I presume that the Direxion Daily Gold Miners Bull 3x Shares ETF (NUGT) - the worst-performing, green trend line on this chart - is only for extremely short-term holds. The daily rebalancing to buy three times the number of forward contracts on the portfolio positions would seem to consume the underlying capital. Although this is outside my domain expertise, it would not seem to be a long-term investment security to me. It appears that the investor must anticipate a price spike, buy, and then sell immediately (within a few days), to make money. Of course, this is simply my speculation, as I have tried and failed with a double-bull natural gas ETF in Canada. Perhaps someone with more knowledge could explain how a long-term investor can make money holding positions which would incur these daily fees?