Replies to post #33161 on VelocityShares Daily 2x VIX ST ETN (TVIX)

[Citrati]

learning curve, said:

First, I’m going to have to understand VIX better.
But in the mean time I have some questions:

Do you really just use TA here?
I’m familiar with the basics of TA, but there are typically my last line of defense against myself.
I typically create an idea than forge ahead with it unless the technicals I see are telling me something is completely off or why I should wait for a better opportunity.

I’m really intrigued that you can find success in TA here....given decay is the only certainty.
I would liken it to using TA with equities that have exponential dilution. It’s virtually useless compared to other tools, research, and concepts.

For me capital size does matter. Maybe you don’t realize how little I had before, have now, and expect to have.
I can enter equites with supposed $100k volume and still feel relatively liquid compared to somebody with a large position. That being said it’s impossible for me to think I will be able to use my same skill set without improving to move 6 figures + around freely.

Response: just one traders opinion. (Mine)

1. Do I really just use TA here? YES

2. IMO, TVIX has been in a confirmed down trend and is so volatile and susceptible to news that I only trade it intraday at present and the only way to successfully do that with consistency is TA. If my TA is successful 75% or more of the time and cut any losses quickly then my gains are more than worth the effort. If and when the S&P enters a confirmed downtrend I will adjust that to a somewhat longer but still relatively short time frame.

3. Decay is the major reason I keep the time frame short.

4. I know several traders who buy UVXY calls to maximize gains on smaller capital investment. If you understand options and are proficient at them that is another method of trading. They would use TVIX, except TVIX does not have options.

5. I commend you for understanding the value of liquidity.

6. What I intended to communicate was that any size of capital is important, yet any size can create gains. Also, one should never (IMO) get comfortable with a loss no matter how small. Yes, it is sometimes the cost of trading, but it should always be as minimal as possible.