SQQQ UVXY & other inverses: Bear trading tips

[murray t turtle]

Theoretically, they may be good to a seasoned pro, but Murphy's Law tends to rule over ETFs and bear trading for me.

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In a sideways= slop= chop=, better off in cash ETFs like SPY/QQQ/dividends............
I closed out something like SQQQ, about as liquid, today, fine.
BUT what you have to watch out for, even in a liquid inverse ETF as SQQQ; have to plan exits. Because time is not the bears friend, even in a bear market. I've made more in stuff like UPRO......... than SQQQ, but not today, as of noon / LOL.
So for me,position size it accordingly+ plan exits, if you want to try it................................................ Young traders blow up trading too BIG. I blew up an account by grinding one down/daytrading years ago.[Believe it or not, SQQQ pays a good dividend, but as IBD founder said, never buy something for just dividend]

You can see on a long term monthly chart of FAZ, for example why you have to plan for exits ,or stay out of that one, for example. NOT suitable for all investors.

 

[antares66]

DWT, 3x INV Crude, Today 24.63 % up. But i am not in

 

[murray t turtle]

DWT, 3x INV Crude, Today 24.63 % up. But i am not in

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Those oil ETFs have some good moves, both ways, any way you want to measure them.
But i also remember an energy trader, who was very good; he used to laugh @ media pretending moves in oil was related to stock market...........................................
That skilled energy trader said '' oil has no earnings. '' Oil { TX TEA} is a fun market to study+chart; i've done better/profit in other stock related ETFs

 

[KCalhoun]

I sold most inverses midday, mainly cash into the weekend this time.

Charts ran up quickly, I learned the hard way to book profits on the way up vs hoping for more.

I will re-enter SQQQ SOXS UVXY TVIX VXX next week on breakouts.

 

[birdman]

Let's discuss inverses here. Anyone else daytrading or swing trading them lately?

I trade my IRA, hence i always keep inverse ETFs on radar. Other than the ones you have mentioned, i often trade JDST, DUST and LABD. You might also like YANG.

 

[KCalhoun]

Remember the sec is thinking about limiting these so we may not be able to trade them any more!.... voice support for them at proshares' site www.fundcomments.com asap

Click more info link at top...

Investors may soon lose the ability to buy leveraged and inverse funds.

The Securities and Exchange Commission has proposed new regulations under which investors would be required to provide extensive personal financial and other information to their broker or advisor, who will use this information to determine if they will be allowed to buy leveraged and inverse funds.

 

[KCalhoun]

Re TVIX one concern is how to mitigate if flash crash and if extreme volatility causes it to implode like XIV did... any ideas?

Brokers I called had no tips. Other than to not trade it or use trailing stops.. That's one reason I diversify by also trading SQQQ UVXY etc.

It just ran from $40 to $180 in less than two weeks and I made good $ trading it.

Also hopefully they'll split it back down soon, how to follow news releases to know upcoming split date?

 

[murray t turtle]

Re TVIX one concern is how to mitigate if flash crash and if extreme volatility causes it to implode like XIV did... any ideas?

Brokers I called had no tips. Other than to not trade it or use trailing stops.. That's one reason I diversify by also trading SQQQ UVXY etc.

It just ran from $40 to $180 in less than two weeks and I made good $ trading it.

Also hopefully they'll split it back down soon, how to follow news releases to know upcoming split date?

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Interesting, brokers suggestion ''not to trade it''
The stock related 3X long or inverse ETFs are not likely to have that XIV problem.Value stock investors most likely help prevent that.
And some of those stock 3X ETFs have a provision, they can use a closing price 24 hours after our regular closing price.LOL/true.[ Personaly, i sometimes kick out something in my account even if doesnt hit my stop; if it under performs + or bothers me for any good reason ]

 

[murray t turtle]

I trade my IRA, hence i always keep inverse ETFs on radar. Other than the ones you have mentioned, i often trade JDST, DUST and LABD. You might also like YANG.

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Interesting;
DRIP is still dripping down a bit.
SDOW made a higher HI, not very liquid, but liguid enough. LOL . BUT with 4 hours till close-i have no idea if that inverse keeps going UP ?? ??

 

[KCalhoun]

Made a few good trades in TVIX VXX UVXY SQQQ but down on GUSH UWT.

"Sometimes you're the pigeon, other times the statue" lol