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Originally Posted by stampsx2
What’s everyones thoughts on leveraged etf’s like tqqq? Still trying to figure out if you can lose your initial investment on that sort of stock.
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Most people will warn you against them for longer-term holding, but personally, I really like them when you are
very confident in the direction of a sector (ie. the whole market crashes and there is very little downside left). Last March, I bought into TQQQ, FAS (Financial), ERX (Oil), NAIL (Homebuilders) DPST (Regional Banks). They have all done extremely well since.
However, you do have to pay attention though, as when they fall, they fall hard because of that leverage. I scaled out of TQQQ at around a $100 (I bought in around $25). I'm not confident enough in the sector to be so leveraged anymore. If it drops into the 60/70s again, I'll look into it again.