The Dangers of x2 and x3 leveraged ETF's

[LEAPup]

Quote from Don Bright:

Even the firms that provide leveraged ETF's advise to only day trade.


Trading of Ultra ETF's: The Ultra ETF's, by design, are basically for Day Trading only.
The UltraPro and UltraPro Short ProShares offered in this Prospectus (each, a “Fund” and together, the “Funds”) seek leveraged or inverse leveraged investment results for a single day only, not for longer periods.


etc.

Don

I won't even do that. These toys/pieces of crap are for those who will be separated from their money soon.

Wouldn't touch one for more reasons than one, that's for sure! Total garbage imo! Each to their own I guess...

 

[WinstonTJ]

Quote from omnpmh:

" leveraged ETFs will have a tendency to APPROACH zero "

Then we can short a double up EFT and a double down EFT at the same time;and our account value has a tendency to infinity?

I think you need to go back to the beginning both for math and for trading.

Last time I checked a short-sale has a finite up-side and infinite down-side.

Just like last time I checked the only way to get zero is to lose 100%.

You are late to the "short the pairs" party and the 2x have far less decay than the 3x but what do I know... I only built the damm things