Justbizness45's Account

[etftalk]

I'm surprised silver and gold are not reacting better today. I guess the strength in the dollar is hurting them.

[justbizness45]

I'm surprised silver and gold are not reacting better today. I guess the strength in the dollar is hurting them.

I was surprised also at GLD/SLV. My FAZ did sell @ 23.00 today for 22.8% profit. UCO is down 19% from my purchase price so I am break even between the two. I will probably hold UCO until the dollar starts dropping. FAZ and UCO are both the wife's ROTH account.

[justbizness45]

Video on leveraged ETFs from Coolhand's TSPTalk thread. Must watch if trading leveraged ETFs.


http://www.tsptalk.com/mb/showthread.php?t=6317

[justbizness45]

Video on leveraged ETFs from Coolhand's TSPTalk thread. Must watch if trading leveraged ETFs.


http://www.tsptalk.com/mb/showthread.php?t=6317

This also from his thread.

http://www.indexuniverse.com/section...y-returns.html

[justbizness45]

Video on leveraged ETFs from Coolhand's TSPTalk thread. Must watch if trading leveraged ETFs.


http://www.tsptalk.com/mb/showthread.php?t=6317

This should work better:

http://www.youtube.com/watch?v=qEYW2CPWHYE&feature=related

[justbizness45]

Part 2:

http://www.youtube.com/watch?v=Muz4HmFYrHs

[XL-entLady]

This also from his thread.

http://www.indexuniverse.com/section...y-returns.html

Thanks for spreading the news. I had heard the rumor this was coming but hadn't seen anything official until now.

Lady

[etftalk]

This also from his thread.

http://www.indexuniverse.com/section...y-returns.html

"If you were to assume that based on this cumulative return of the index, the bull fund would have experienced a 27% loss and the bear fund would've experienced a 27% gain, you would unfortunately be incorrect," wrote the company in the document. "In fact, for that time frame, the bull and bear funds returned -34.46% and 6.32%, respectively."

So, does that mean we should be shorting the bull fund (FAS) rather than buying the bear (FAZ)?

Actually, after listening to the videos about the daily compounding, it sounds like we should always be shorting the opposite fund with every trade during a volatile market. If you think financials are going down, short FAS. If you think they are going up, short the FAZ. At least until they change to monthly compounding.

Is there a flaw in my thinking?

[etftalk]

I think this is so important, that I copied these last few threads over to the ETF trading forum... http://www.etftalk.com/forum/showthread.php?t=430

[justbizness45]

That's why I posted it. It explains a lot about why I have gotten my posterior kicked more often than not with the leveraged ETFs and I just got lucky with my last FAZ trade. I had a gross conceptual error in how they operate. It also tells me that holding a losing Bear Leveraged ETF is a poor choice in most cases. I will sell my UCO tomorrow and chalk it up to tuition to ETF University.