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!
All triple leveraged ETF's will go to zero, bear ones, especially. You need a pairs trading method for those, otherwise you will lose.
Going down the last few weeks continuously and you want to know whether to sell? You're supposed to ride winners, not losers. Sell it.
ROFLMFAO!! Get out while you can. You are in WAAAY over your head. Go back and learn to trade in sim acct before trying to juggle Nitroglycerine bottles.
I have been trading with TNA and TZA and made good money. However, never seen TZA this down whih is causing little panic. Thanks for the replies.
You obviously did nt read my above post. You need some education before you start swimming with the sharks. Take your losses and go read a few books to understand what you are doing. If you continue down this path you will be broke before Valentines Day.
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
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.
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?