Fitz919

Distressing Details of the UltraShorts

Leveraged and Leveraged Inverse ETFs have brought something new to the Day Trading World. The ability to make money every single day. If you strictly day trade them, they are the perfect vehicles. They make big swings every day, and since they pair up as mirror opposites of each other you always have one that's going up. Day traders have never had this before...it's miraculous. I've traded them since March 2008, and with the advent of triples...it's just getting better and better.

Distressing Details of the UltraShorts

It's good to see others who are having a positive experience with leveraged ETFs. I'm up 18.5% in the last 2 weeks using triples. There were only 9 trading days due to MLKing holiday, so that's more than 2% per day. I'm trying to very cautiously build that to a 5% daily average, without using any margin.


On Jan 23 08:18 PM genesok wrote:

> I believe anyone doing the least bit of investigation into the leveraged
> etfs would understand the advantages and disadvantages of using them.
> Your headline "Distressing Details of the UltraShorts" seems to me
> to be inflamitory and disparging of a very useful product. There
> was nothing distressing for me using these products the last year
> (they saved my ass), along with regular equities, giving me an annual
> return ofover 50% for 2008. There has been numerous articles on this
> site explaning how they work and anyone using them should have not
> only read, but thought about the information on how the calculations
> are make. All readilly available at the fund's sites!

Distressing Details of the UltraShorts

Contango and Backwardation are the chief problems. When the next contract they have to buy is more expensive than the one they are selling the share price drops. When this happens over several months like it sometimes does, the value of your holding erodes away.


On Jan 23 03:59 PM Clare123456 wrote:

> Please comment on USO performance long term.Does it suffer from the
> same malais?