On another thread I showed ETers some alpha on going QQQ over SPY. Someone mentioned TQQQ is superior. I was skeptical. I know these leveraged ETFs have carry costs and what not that tend to drag down returns. But then I thought, what the hey, let's test that mofo. So I took the data for it and QQQ starting with TQQQs inception on 2/11/2010. If one had put $100 in QQQ on 2/11/2010, today that would be worth $824.96. That is legit as FUK, no doubt. But what if one had put $100 in TQQQ on 2/11/2010? That $100 would be worth... wait for it... wait for it... $10,704.08 today!!!!!!! More than TEN FREAKING TIMES as much!!! That's in like 11 freaking years!!! Sure, the drawdowns were bigger in TQQQ, max drawdown being a bit under 30% in QQQ but almost 70% in TQQQ. Sure, you probably would have offed yourself a few times over if you had put your life savings in TQQQ. But let's look at it from another, even more telling angle. If you had put only $7.707 in TQQQ on 2/11/10, guess what that would have grown to today? $824.96. That's the same amount you would have ended up with if you put $100 in QQQ (see above). That is over $92 you could have ALSO invested any anything you wanted!!! Gold, bonds, whatever! Now, THAT, my friends, is ALPHA. Enjoy! Saltynuts... bringing ETers alpha since 5/19/21. P.S. please sign in here you who pointed out TQQQ in the other thread, you deserve some credit as well! This Bud's for YOU!!!! P.P.S. why doesn't the massive 3x leverage this thing brings to bear drag down its returns more, anyone know? Its like too good to be true!!!
Wait until you've developed your trading edge so you can trade NQ with 3 to 5 lots per trade... I bet you don't want to invest in QQQ/those 3x leveraged ETFs anymore.
SOXL is my favorite long leveraged etf currently, great chart yesterday and today. I remember when TQQQ was much lower, another strong favorite
Actually the most amazing Direxion 3X ETF since the Pandemic bottom was FNGU -- 3X FANG+ Index. https://research.ameritrade.com/gri...15997c0az55c8cad5c7a14e658c8139209c514775.png From 3/16/2020 to 5/20/2021 FNGU 848% (1354%) SOXL 713% (975%) TQQQ 452% (530%) LABU 276% (1006%) * The numbers in parenthesis are the maximum gain which was around mid February 2021. The 3X Biotech was actually the second best after FNGU at the peak it has really collapsed since mid February. The XBI itself is down 27% since then. * Edited fro the LABU data.
LABU has fallen over 70% from its highs. Yesss 70%, ill say it again 70%%%%%%% SOXL is down from 45 to a low of 28 recently which is a nasty 40% drop Just keep in mind that a simple 20% drop in the nasdaq and SOXL, FNGU, TQQQ and LABU will all lose more than half their value in only weeks time. I usually trade these handful of triple etfs after they have fallen substantially, had recently bought some of these on May 11th and 12 while nasdaq was in free fall and sold out everything today. Will wait for another drop as the next drop should easily take these down 30%-50% or more.
Yeah I only trade these 3X Sector ETFs on a technical basis using the 50-day SMA. I sold most of my SOXL, LABU & FNGU in early April. I completely exited LABU & FNGU about 3 weeks ago. Higher interest rates will continue to wreak havoc on these negative earnings companies as well as the triple digit PE stocks that the FANG+ index has like SQ, TWTR, PYPL, etc. I think the LABU performance was a perfect storm of the vaccine makers skyrocketing along with the small caps going parabolic in February.