Author is right. Forget those articles you read. They are just theories. IN reality I trade SDS for 2-3 day holds along with SSO and with this volatility it's perfect to trade.
On Feb 22 12:25 PM Aalan wrote:
> Sorry, but this author is completely mistaken. SDS will not provide > peace of mind, because it does not track the inverse of the S&P > over a long period of time. In fact, it can produce a loss, even > when the underlying index goes down, due to leveraged volatility. > There have been many articles demonstrating this. > > I don't know of anything that can produce "peace of mind" in this > market, but leverage certainly doesn't. And this is supposed to compensate > for the risk of holding a fund that you expect to decline by 30%? > Good luck!
SDS: A Way to Ensure Peace of Mind [View article]
On Feb 22 12:25 PM Aalan wrote:
> Sorry, but this author is completely mistaken. SDS will not provide
> peace of mind, because it does not track the inverse of the S&P
> over a long period of time. In fact, it can produce a loss, even
> when the underlying index goes down, due to leveraged volatility.
> There have been many articles demonstrating this.
>
> I don't know of anything that can produce "peace of mind" in this
> market, but leverage certainly doesn't. And this is supposed to compensate
> for the risk of holding a fund that you expect to decline by 30%?
> Good luck!