Official Let's Make Some Money Off Stocks Thread
01-15-2009, 10:01 AM
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Originally Posted by ExOdy' date='Jan 14 2009, 10:02 AM
salvo?
01-16-2009, 08:02 AM
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Originally Posted by chrisjgiuliano' date='Jan 15 2009, 01:55 PM
Anyone dipping their toes into the 3X ETFs?
That's a lot of leverage...
That's a lot of leverage...
01-16-2009, 01:08 PM
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Originally Posted by cthree' date='Jan 16 2009, 09:02 AM
Leverage works both ways. You should fully understand the nature of the ETF. They track their targets with varying degrees of accuracy and sometimes charge a very high fee, especially the leveraged ones. You may be better off buying a cheaper one on margin. You need to understand what you're investing in.
01-16-2009, 02:47 PM
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Also, remember that all these leveraged ETFs decay in a sideways market and over time. So they are not good to hold for very long term.
Example:
ETF B is leveraged 2x of index A
Day0: A = $20 B = $10
Day1: A = $24 B = $14 (20% gain in A and 40% gain in B)
Day2: A = $20 B = $9.34 (16.667% loss in A and 33.334% loss in B)
Because of this it's best to use them when you think it will break out soon one way or another and use stops in case you were wrong.
Example:
ETF B is leveraged 2x of index A
Day0: A = $20 B = $10
Day1: A = $24 B = $14 (20% gain in A and 40% gain in B)
Day2: A = $20 B = $9.34 (16.667% loss in A and 33.334% loss in B)
Because of this it's best to use them when you think it will break out soon one way or another and use stops in case you were wrong.
01-20-2009, 10:22 AM
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banks are going down today ...also
Fiat to take 35 percent stake in struggling Chrysler under nonbinding strategic alliance plan
ROME (AP) -- Fiat and Chrysler said Tuesday they have agreed to form a strategic alliance that would give the Italian auto empire a 35-percent stake in the troubled U.S. carmaker and could eventually bring it full control
Fiat to take 35 percent stake in struggling Chrysler under nonbinding strategic alliance plan
ROME (AP) -- Fiat and Chrysler said Tuesday they have agreed to form a strategic alliance that would give the Italian auto empire a 35-percent stake in the troubled U.S. carmaker and could eventually bring it full control
01-21-2009, 04:56 AM
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Originally Posted by chrisjgiuliano' date='Jan 15 2009, 01:55 PM
Anyone dipping their toes into the 3X ETFs?
That's a lot of leverage...
That's a lot of leverage...
I was just hoping for a bounce off that Dow 8000/S&P500 800 level again. If it goes through, oh well. I don't have a whole lot of money in it right now.
Andrew