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Originally Posted by opendoor
How are you introducing the leverage to make that work? If it's through margin, isn't that a bigger risk than just losing your $50K? In a large downturn, couldn't you end up underwater while still having to pay interest on the borrowed amount?
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No margin. The underlying ETFs are designed to replicate the daily move of QQQ and SPY by 2 to 3 times. It is a super risky investment strategy though. You are dealing with decay from the instruments themselves and a bet that this current interest rate cycle will end and an inverse correlation between bonds and stocks returns.
I have enough long term money in traditional asset mixes that I can risk a bit. I personally hate picking single stocks for long term performance though and this is the kind of risk I am attracted to. Definitely could be a big old loser.