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Originally Posted by stampsx2
Can you lose your initial investment on these? Sorry i’m still kind of new to the stock world especially with regards to etf’s but trying to learn. Tqqq seems like it’s always going up and with the strength of the market i think it might continue it’s trend. It’s hard to figure out how telecom could do anything but go up with what covid has taught us.
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Yes you can lose your initial investment.
The thing that crushes the levered ETF's is volatility. So if the underlying assets go straight up for a while, it's fine (well its better than fine because you're making good money!). But if it goes up and down a lot and rises through time, you're going to get rocked because with the leverage and the way that math works it resets and eats the return.