QQQ Only Has to Drop Back to May 2019 Levels for You to Lose Everything
TQQQ seems like a very profitable opportunity right now. I would invest whatever I could survive losing in it, too. However, there is a non-zero possibility that it could go to 0. The way leveraged ETFs work is a little more complicated, but in my simplified understanding, if the Nasdaq drops 34%, TQQQ drops 3 x 34% = 102%. (In reality, it never goes to 0 for some reason. It just gets so small it's effectively like 0. )
TQQQ has only existed for 10 years and they've been nearly the best 10 years in the history of the market. So the charts aren't going to show any good examples of what can happen in cases like the year 2000. One might want to keep the very unlikely downsides in mind when figuring out how much to allocate to TQQQ.
評論
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CORRECTION: I accidentally pasted in the sentence "TQQQ seems like a very profitable opportunity right now. I would invest whatever I could survive losing in it, too." from something I wrote in April 2020.
I DO NOT NECESSARILY see it as a short-term profitable opportunity at its July 2020 levels.
I generally see it as a good long-term investment due to the fact that technological innovation is the source of nearly all economic growth. However, it's probably a good idea to have a stop loss at somewhere near the 50-day moving average to avoid disaster.
I've spent the better part of the last 10 years trading leveraged ETF's and I'm about to enter into SQQQ. There is a double top, the 13th and the 21st. I will go short assuming it peaks tonight.
aaronsmth5
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@z3m25, same here my man...TQQQ puts and SQQQ calls
z3m25
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@aaronsmth5, Going short, entering a stop for 11,060. Ride it down to the 50 day or 200 MA depending on volume. Nice short swing!
swusr
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Are you planning to buy TQQQ at $112 ?
mikepsinn
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@swusr, I've been using its consistent logarithmic recovery trend to decide and $112 is a short-term buy in my opinion: