Xyrus

Why Everything You've Heard About Leveraged ETFs Is Wrong

A small correction. These ETFs only perform well when the market is trending continuously. If it only trends in fits and spurts, these still aren't a good hold.

Even in a low volatility market if the market isn't trending for any length of time these ETFs will lose value. Even if the index is wobbling by only fractional percents a day.

The instruments are day trading and at best swing trading tools. Holding them for weeks or months at a time isn't wise unless you're going to be watching it every day (or have stop losses in place), or you know for a fact the markets are going to be in a continuous trend for a long time.

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