Joe wrote:
Nice idea, but these 3x ETFs swing around so much that it seems like you'd always get stopped out on any "downtick".
Good question. First of all, I was just describing what I do. You can try for less risk for less reward by using 2X ETFs like SSO and SDS, or even ETFs with no leverage at all. In fact, I would recommend doing that for anyone starting out.
As jumpy as the 3X ETFs are I like them because they are still tied to the general market and so if the market is moving they must move in sync, so if you have the direction right you will generally be OK.
Also, I try to buy on the down fluctuations of an uptrend. See this chart:
Lastly, I am more often wrong than I am right, but I make more money when I am right than I lose when I am wrong, so the profit is still there.
No comments:
Post a Comment