Thanks! Isn't that saying basically if the ETF drops by 75% or more than you are going to get cashed out at the value it dropped to? I'd be OK with that in the TQQQ context as least, never going to drop 75% in one day, that would mean QQQ dropped like 25% in one day. If that happens EVERYONE is in trouble, not just holders of TQQQ. I was wondering if it ever happened when the ETF sponsor, in this example, owes you the $25 bucks after your $100 investment crashes on a 75% down day, but can't pay you the $25 so you get shorted. Don't think that has ever happened. And remember, I only have [10%] of my account starting out in TQQQ, so when QQQ drops 25% I'm still down less than [10%] vis-a-vis my original account balance (assuming I put the other [90%] in short-term bond funds, for example, looking for alternatives, hence this thread). You have 100% in QQQ, so you are down 25%. Its these GIANT logarithmic returns that, along as you can stomach big drawdowns to your FUTURE EXTRA HIGH account balance, allows one to kick so much a$$. Start small to avoid big drawdowns, let that compound, grow rich....
You'd want to do the opposite. You would actually get pretty good returns shorting TQQQ and going long QQQ. You'd even get a negative beta, meaning this could be a good hedge.
%% LOL market makers profit on tqqq/profit; turned out right on this year/\ espcially if profit targets were aiming for for more than market makers profit. QLD pays a dividend, most likely not as good as market makers yearly profit
Nice notagain. Can I test that on yahoo finance? Historical data looks like it goes back to 2000 so it looks like I can. Will follow up!!!