Torsten Asmus
The instrument matters
It is possible to do brain surgery with a power drill. In fact, this has actually been done, relieving pressure from a brain bleed, for example. But I think we'd all prefer that the power drill be used on
NVD: A Fine Trading Tool But Really Not A Hold
Summary
- NVD is a specialized tool for short-term, leveraged trading of NVDA, not for long-term holding or buy-and-hold strategies.
- Daily reset and volatility drag make NVD unsuitable for holding periods longer than a few days, as losses compound over time.
- Costs, including bid-ask spreads and fees, are less relevant for day traders but significant for longer-term holders.
- If you want to day-trade NVDA with leverage, NVD works as intended; just don’t treat it as a long-term investment.
Tim Worstall is a wholesaler of rare earth metals and one of the global experts in the metal scandium. He is also a Fellow at the Adam Smith Inst in London and an writer for a number of media outlets, including The Times (London), Telegraph, The Register and even, very occasionally indeed, for the WSJ. This account is linked with that of Mohamad Machine-Chian: https://seekingalpha.com/user/52914142/comments
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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