How do you think this will play out?

Discussion in 'ETFs' started by kleckley, Oct 16, 2011.

  1. kleckley


    I've been trading the TNA for the past couple of months. What I am doing is buying 1/3 the vallue of my account and treating it as a full position. So of coarse as soon as I bought at $65 it headed south. This is why I'm using the 3x leverage to sim a full position though. Not ever knowing which way it will go I wanted to keep some powder dry. So when it got to $45 I added another 200 shares ( that was my first purchase also). That brought my BE to $55. Without going much lower it turned and got back to $55ish where I sold 200. So now I'm in at $55. Well then it continued downward to $32.5 and I bought again(200). From there it got as low as $27. Got me nervous but I was prepared to let it go further and buy again. It got back up to my BE of $43.75 and I sold 200 shares to get me back to a 1/3 acct value position of 200 shares. So here I am at about even and just trying to decide if this is viable or have I just been lucky so far. My plan has been to maintain the 200 shrs or roughly 1/3 acct value while buying again @ 30% pull back and selling when back to even.
  2. N54_Fan


    You are playing with fire and you are just lucky you have not gotten burned too bad. Do you even understand how leveraged ETFs work? If not go read about how they are recalculated everyday. You have a recipe for losing alot of money fast with what you are doing. I also assume you are VERY new to trading as 1/3 of your account is entirely too much risk for this kind of instrument. Do some reading and educate yourself before you step into the lions den.

    Just my $0.02
  3. ===========
    Mr Kleckley;

    a] I agree with you, on $ 65-68 & $45 are good support & resistance points, for TNA, 1 year chart. Not so good on 10 year chart.

    b-buy] I like your selling points better than your buying points;
    because of the age of the trend[direction] on 1 year chart.And i had much rather take delivery of a co/below 50 day moving average,, or a basket of companys;
    than buy an etf, generally speaking, below 50 day moving average..

    c]Plenty of people took delivery of a company with a large loan ;
    but i agree with the other poster, highest probability is your etf size is way too large. It could easily go down to $8 area, or up to $100 area & has on 10 year chart.

    Neat thing about smaller position size, even if TNA buyers decide to ignore a 50 day moving average, and buy heavily??;
    your trading business account is still probably in business. Good question.:cool:
  4. antaram


    you trade like a sucker, it will end very badly