HCSKnight

Ultra and Inverse ETFs: The Downside of Doubling Up

The "problem" with math such as "or instance, if the Nasdaq Composite Index goes up 10 percent on Monday and then falls 10 percent on Tuesday, the total loss over those two days is 1 percent. The ProShares Ultra QQQ (QLD), however, will rack up a total two-day loss of 4 percent, not 2 percent." is math strictly applied to speculation ONLY represents what is posited.

If speculators, I dont believe in "investing", should learn how to correctly use stops, capital exposure and risk management...

If one buys and ETF at X and sells at X+Y they make Y. If the buy an ETF at X and sell at X-Y they lose Y. X & Y are not price but capital put at risk. This is the ONLY math that counts.

IMHO