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Originally Posted by Table 5
I always hear this, and yet in practice, my biggest personal gains have been from holding leveraged ETFs (FAS, TQQQ, ERX, etc.) for months at a time. Obviously there is a higher risk (because when these fall, they fall hard) but if I am confident in the big-picture trend (ie. a recovery from the Covid crash, or Oil prices going below zero) I have no problem buying these for longer periods. I've never done this for inverse ETFs though, as those never seem to work as well.
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I mean, if you catch a one-way every day type move, they'll work out. If that's what you think is going to happen though I'd put in less money and buy out of the money options on a regular ETF. Much greater upside per dollar invested, and if you invest a smaller amount the downside in dollars is likely less for similar or greater total upside potential.