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PHOENIX TRADING
 

Registered: Mar 2012
Posts: 6770

 

03-13-12 12:27 PM

leverage funds do exactly what they are meant to do

I find Double funds work best as longer term plays.

2x& 3x are momentum plays .
3x funds not only do you need to be right about direction it won't tolerate anything but the mildest volatility against you while holding it.
Otherwise the 2x fund will probably outperform over the time period.

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wildcard
 

Registered: Mar 2012
Posts: 2

 

03-21-12 04:05 AM

Don't forget that these 2x and 3x ETF's are held at higher margin requirements than if you were to buy just the QQQ or SPY.

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bone
ET Sponsor

Registered: Apr 2002
Posts: 4329

 

03-21-12 05:14 PM

ETFs are an incredibly valuable spread trading instrument. ETFs versus ETFs, ETFs versus single stock components, ETFs versus baskets of stocks - the flexibility for spread position swing trading and intraday arbitrage are a very powerful feature. Use the leverage to your advantage in terms of spread leg composition.

Just a thought about strategy.

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