Replies to post #2974 on ETF SWING & DAY TRADING

[janet33]

doodleboodle: rydex funds
they invest in leveraged instuments, and futures contracts
to get you the 2x. They also hold the stocks qqqq holds.
I think they are safe, at worst you get a 1x.

[QQQQ Trader]

Rydex Funds, RYVNX and RYVYX (Venture 100 and Velocity 100), accounts for twice the action of Nasdaq 100. Venture 100, RYVNX, moves against Nasdaq 100, so you are "shorting". If Nasdaq 100 goes down 1%, the fund will move up 2%. Same applies with Velocity 100 except you are going "long."

They have other funds as well that moves same as Nasdaq 100. You can open account with Rydex Funds and incur no fees (annual fees though? Not sure) but you have to have 25k to open an account. You can trade them through a broker as well but you will pay commissions and might be charged additional fees such as 180 day "short-term redemption fee".

Since I don't like being tied to enter a position at the end of the day, and like the flexibility of Cubes, you can go with full margin and achieve similar results, twice the gain/loss.

Hope this made some sense.

[FreeMarkets]

I'll add a couple of notes about Rydex to the other two posters.

--If you hold money at Rydex, you can trade the dynamic funds twice a day. I think it is an hour or so after open and then at the close. QQQQ at a broker can be traded all day of course. Then again, you can only trade Rydex funds at Rydex.

--Rydex Velocity won't match 2X QQQQ exactly over time because Velocity is priced each day. In other words, you have compounding going on.

--Rydex lets you float a little, which is great if you have a system that has cash signals. Why is it good? Because you can put your cash in the bank or temporarily pay off a line of credit waiting for the next signal. When it comes, you can buy Rydex funds before the money gets to Rydex (assuming you have wiring instructions set up).

As an aside, Rydex has the best tax reporting of anyone I have seen.

[husk]

Hi doodle...I have been using Rydex as the custodian of two of my IRA's for about 10 years. The 2X funds are intended (and do) double the rise or fall of the NDX. There is no magic formula in using them that makes one wealthy, however. If you're on the wrong side, you lose twice as much.

If you are a trader that can consistently turn a profit, year over year by using the Q's, of say 20%...then, yes, if you apply the same criteria in trading and use the Rydex 2X funds, you will realize 40%.

And, as Yogi says, there is no charge for any trading if Rydex is the custodian..which is just as good as money.

[asnem]

Don't use these funds for the long term. In Nov 2000 the ndx was about the same as now. If you bought the qqq then you would be about even. ryvnx then was 49.30 now 20.60. ryvyx then was 32.30 now 21.26. The fees they charge are internal, you don't see them.
Bmourn posted something about this @ clearstation.
GL