does it EVER make sense to buy and hold a 3X bull ETF ?

[Scataphagos]

Really enjoyed this discussion! I like that you can take on leverage in a levered ETF and and have that amount be your max loss. Where as you can technically loose the entire notional value of a futures contract. Do levered ETFs have validity in this case or are options a better solution? Thank you

From Stock Charts.com... graphs of SLV,USLV and TNA,IWM. One where there was not a profound uptrend, the other has that. Suggests to me that rather than "long term B&H", better to attempt to "time" the silver move.

 

[murray t turtle]

It was never $5. Just like upro was never $10 and SPXUwas never $500.

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They split some of that stuff so much............................................ Maybe one reason some hate TA so much LOL

 

[TraderNurse]

Think of what you might lose,NOT what you might make !!!

 

[JKG77]

LETFs are path-dependent realized vol products. They should be avoided if you don't know how to model them.

 

[murray t turtle]

Think of what you might lose,NOT what you might make !!!

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Good pointsTrenderNurse;
think of what you could lose ;+ lose in opportunity cost$, if all put money in bank CDs only

 

[Buy1Sell2]

Most people trade futures with leverage of 3 times and higher, so yes it makes sense.

 

[murray t turtle]

Most people trade futures with leverage of 3 times and higher, so yes it makes sense.

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CS called in the note, so to speak ,on UWTI[ 3X oil uptrend ]; still had plenty of good trends, good volume, but they never raised margins.LOL I called up Janus + asked the if they were going to split it again, when it got real Low; Janus said that would be up to Credit Suisse.

I just found out the stock market closed during WW I according to IBD chart book -when it opened back up it gapped up a lot; a real killer for the leveraged shorts

 

[Sig]

Most people trade futures with leverage of 3 times and higher, so yes it makes sense.

Which do not behave in the same way as a 3x ETF, so not an apples to apples comparison. The times you get into trouble with leveraged ETFs are the times you don't understand the difference.

 

[Buy1Sell2]

Which do not behave in the same way as a 3x ETF, so not an apples to apples comparison. The times you get into trouble with leveraged ETFs are the times you don't understand the difference.

Won't get into any more trouble, and likely less, with an ETF versus futures.

 

[Sig]

Won't get into any more trouble, and likely less, with an ETF versus futures.

I thought it would be uncontroversial to suggest one not trade something they don't understand. Apparently not.