Ha, I did the same thing with my 401k, had the thing maxed out by the end of Q1 thinking I was smart.
Absolutely. It's also 100% dependent on the action of natural gas futures. So a short term chart will mimick the futures chart. This has always been the case and anyone telling you otherwise has been wrong. But looking forward three months and trying to use technicals isn't going to work. Short term only. Never ever play it beyond very short term.Brian Earl Spilner said:
One thing I wonder about leveraged stocks like this...if enough people are trading it, is it possible it does start trading/behaving along those trendlines?
FOMC is 2/1, not tomorrowperma Brew doomster said:
and FOMC tomorrow, going to be interesting. Tons of energy built up in this range now.
Brian Earl Spilner said:
Today would've been a good day to ride EGOC.
$30,000 Millionaire said:
3820 has got some power
The ETF's nav uses derivatives... so theta decay (the strategy they use would go to 0 on any day there was a -33% return for TQQQ)Philip J Fry said:
I'll say the decay thing really confuses me. Does the purchased price change in your portfolio or does the decay come into play when you sell it?
I've always wondered about the management fee/expense ratio of leveraged ETFs like BOIL and/or UPRO. If one is just day trading them I'm assuming the fee/expense is never applied?irish pete ag06 said:
They also charge a 0.86% management fee.
Brian Earl Spilner said:
I think decay is a little overblown when discussing these leveraged ETFs.
Unless you're planning on holding for literal years, isn't it fairly unlikely you'll actually profit less than you would with the underlying asset? (Provided you sell for a profit of course.)
I don't see how buying BOIL now and holding for even 6 months or so could possibly net you less than if you invested in nat gas directly. It certainly won't be 2x but it won't be less than 1x.
Unless I'm missing something?