Stocks - The Best Buys 2

[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.

[Table 5]

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.

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.

[Table 5]

FYI I'm still holding ERX, FAS, DPST, NAIL. I also recently bought JNUG (Junior Gold Miners 2x) when it dipped into the 70s (the 52 week high is $191). I think Precious Metals are about to have another resurgence.

[Samonadreau]

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.

I hold positions in TQQQ and TECL. I wish I was more of a day trader and all i would trade is these. They do fall hard at times bit seems everytime they do they come back up even stronger. I used to buy and sell these positions but just hold now. There is always the risk that a bubble bursts though and you could lose your shirt if you bought high.

I would suggest a buy in or at least watching closely of one of these next time the markets tank.

[FurnaceFace]

Originally Posted by flylock shox

SCR may provide a recent cautionary tale when it comes to the Nasdaq listing. Lots of folks expected SCR to rocket when it went live on the Nasdaq, and instead it began its long decline (now trading at about 50% of its value at the time).

This is a topic that I’ve wanted to dig into more. From my purely anecdotal experience with a few stocks that have consolidated, it seems frequently they start sliding down not long after consolidating. My theory would be something like investors were comfortable with the stock at x dollar figure and the consolidation disrupts this which eventually causes the price to fall back. Consolidations have generally not been a good sign for stocks I’ve owned.

[stampsx2]

Originally Posted by Table 5

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.

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.

ERX and NAIL look like real etf’s. Tqqq somehow always seems to perform well.

[Slava]

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.

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.

[Table 5]

I'm not sure I'm aware of any ETF where you can't potentially lose some/all of your initial investment!

If you're new to this, it's probably best to avoid leveraged. The volatility is what makes it great, but it's also what makes you lose your shirt really quickly. I remember holding FAS for years, watching it go from $10 to over $100. When COVID hit, I was slow to react, and it dropped down to $20 within a matter of days, pretty much wiping out most of my gains (but I was atleast smart enough to not sell, and to add to it).

[Kybosh]

Originally Posted by moncton golden flames

I hope you jumped back in yesterday! Nasdaq uplisting announced for Tuesday! Shares up about 30% today.

Now up 43.8%. $3.81 per share.

[Ashes]

MindMed closed at +65% today!

[Kybosh]

Originally Posted by Ashes

MindMed closed at +65% today!

My other psychedlic stock NUMI went along for a bit of a ride at +28.6% today. Nice to see a green day ha.

[DownhillGoat]

PHO with some signs of life today which was nice.

[The Fonz]

Anyone in SHG.V? There's a rumour that it'll get listed on the NASDAQ in late May. I'm not sure how legitimate that rumour is though.

It was up 14% today.

[FurnaceFace]

Originally Posted by The Fonz

Anyone in SHG.V? There's a rumour that it'll get listed on the NASDAQ in late May. I'm not sure how legitimate that rumour is though.

It was up 14% today.

Yep, a little. I’m in at 25% higher than the close so hopefully it keeps going up.

[Bill Bumface]

Originally Posted by Table 5

I also recently bought JNUG (Junior Gold Miners 2x)

JNUG is 3x, and is the perfect cautionary tail for leveraged ETFs. For the person asking about losing your investment, look at a 5 year chart of JNUG.

In 2016 it dropped ~90% in 4 months. Would you have kept on piling more money in, hearing the bullish news, expecting to earn your losses back? Because that's how people go broke.

IMO, write your exit plan down on paper. Then add a note to your future self that tries to justify not following that plan that they are about to go broke.

I also think triple leveraged ETFs have their place, but if you go in optimistically, they can hurt you badly.

[Table 5]

Originally Posted by Bill Bumface

JNUG is 3x, and is the perfect cautionary tail for leveraged ETFs. For the person asking about losing your investment, look at a 5 year chart of JNUG.

It used to be 3x. It’s now 2x.
https://www.direxion.com/product/dai...l-bear-2x-etfs

I’ve had pretty good success with leveraged ETFs, but yeah, the volatility and decay can be a killer, and you get massive drops that make it impossible to recover. But it’s also why it can lead to multibaggers within a few months.

[Kybosh]

Originally Posted by Ashes

MindMed closed at +65% today!

Continuing up with +34% so far today!

[dino7c]

Originally Posted by Kybosh

Continuing up with +34% so far today!

I bought it so expect the drop any time now

[Kybosh]

Originally Posted by dino7c

I bought it so expect the drop any time now

Maybe it rockets up with Nasdaq uplisting tomorrow. . . or maybe it craters. No idea haha. My guess is it closes around $6.50-7 tomorrow.

[DoubleK]

Originally Posted by Kybosh

Maybe it rockets up with Nasdaq uplisting tomorrow. . . or maybe it craters. No idea haha. My guess is it closes around $6.50-7 tomorrow.

Wasn't it north of $10 a couple years ago?