! Inverse and Leveraged ETFs
Cara Scatizzi is a former associate financial analyst at AAII.


Paul from FL posted over 6 years ago:

I have been trading leveraged and inverse leveraged ETFs daily, 2-3 hours a day, with good results. Profit:Loss ratio now at 91%:9%, and 15% for overall performance 2010 to date. While I realize this day trading investment approach is risky, my results seem to me to be very good over 2010. My investments, were they to fail completely, will not impact my financial security.

Can you supply something other than warnings against this investment approach? I would appreciate input beyond my own models and rules, though these are working well so far.

Thank you.

Scott Sneddon from CA posted over 3 years ago:

Too bad this discussion didn't go anywhere. I've been interested in using the weakness in holding these products as an advantage. For example, if holding UVXY long will result in less return than expected, then why not short it while the market is heading up? This would have worked incredibly well over this past year in particular.

Frank from MI posted over 2 years ago:

Can you loose more than what you invested with the leveraged ETFs?
I mean if you invested $100, and the 2XETF changes -60%, would you have to pay extra $20? Or you simply loose all your $100?

Charles Rotblut from IL posted over 2 years ago:

The maximum loss would be your purchase price of the ETF. The ETF uses leverage, not the investor purchasing it with a non-margin account.


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