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antaram
Registered: Apr 2011
Posts: 79 |
01-13-12 02:04 AM
yeah, i'm sure you have made good money trading tza and tna, i'm also sure my father is "about breakeven" playing poker
tza and all the 3x and 2x etf's have been going down for years now, inverse ones more than the regular, and will keep doing so, just pull up any 4-5 year chart
these are to be used only for daytrading, i thought everyone knew this by now since brokerages make you read and sign some papers when you trade them, saying that you understand the risk
don't hold positions in these things unles you have great experience and understanding of how they work
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trader2012
Registered: Jan 2012
Posts: 4 |
01-13-12 05:56 PM
I do understand that TZA was designed for a day trading. I have been experiencing with TNA and TZA just few months now and do not invest so much until I totally learn about them. I use different resources this forum to learn more including. I bought it at $28.57 and got stuck with it this time. I could not sell it the same day or even few days later. This was my dilemma.
What happens when these ETFs go to zero? Could not find a good answer to this so far?
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bwolinsky
Registered: Jul 2008
Posts: 4546 |
01-15-12 01:03 PM
Quote from trader2012:
I do understand that TZA was designed for a day trading. I have been experiencing with TNA and TZA just few months now and do not invest so much until I totally learn about them. I use different resources this forum to learn more including. I bought it at $28.57 and got stuck with it this time. I could not sell it the same day or even few days later. This was my dilemma.
What happens when these ETFs go to zero? Could not find a good answer to this so far?
You can sell within 1 overnight hold, and you have up to 3 daytrades allowed below min eq daytrade thresholds.
If you treat trades like cash accounts, this does not constitute a daytrade, so, yes, you could sell it within 1 overnight hold or the next day if you wanted to and it would not be considered a daytrade. Selling the same day would be a daytrade, but holding overnight even only once won't get you in trouble because the trade will have settled funds to pay for itself and not be subject to daytrade rules.
You still need pairs trading methods to trade leveraged ETF's.
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trader2012
Registered: Jan 2012
Posts: 4 |
01-16-12 06:19 PM
bwolinsky: Thanks for the reply. What do you think I should in this case? I do not have a pairs strategy for this TZA I've been holding. It is now at $23.XX and my avg is $28.57. Do you think I should sell it now?
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lindq
Registered: Mar 2002
Posts: 2475 |
01-18-12 01:24 AM
Quote from trader2012:
bwolinsky: Thanks for the reply. What do you think I should in this case? I do not have a pairs strategy for this TZA I've been holding. It is now at $23.XX and my avg is $28.57. Do you think I should sell it now?
Hopefully you understand that a bet on TZA is basically a bet that the overall market will fall. If you think that the market is going to drop, then hold it. If you think the market will rally, then sell it. Nobody can advise you as to what the market will do. But a good rule trading any instrument is: If in doubt, get out.
And if you don't know precisely why you're in a trade, then you shouldn't have pulled the trigger in the first place.
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SteveNYC
Registered: Jul 2010
Posts: 787 |
01-18-12 01:42 AM
Quote from trader2012:
If the ETF has been going down last few weeks continuously, is it a good idea to sell and take the lost or wait for it to go up?. This question is for TZA. Thanks!
When the Dow hits 14,500 later this year, TZA will probably be at 5.
TZA could go to zero soon or later. TZA has been going down for years.
Don't see a technical reason why it should suddenly reverse.
The hard trades are to sell and then sell short. So they are probably the right trades.
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