woofys
212 posts
msg #83567
- Ignore woofys |
11/28/2009 6:59:59 PM
How do I deal with inverse etfs like FAZ(bear) or FAS(bull). I know they are going in the opposite direction of their index and the rest of the market. So, If the market is going up and a chart of FAZ show its candles desending, do I short FAZ? Also,
do I stay out of FAZ so long as its candles are not desending? And I thank you for your help.
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Eman93
4,750 posts
msg #83573
- Ignore Eman93 |
11/28/2009 8:57:50 PM
If you dont know what they do...save your money...... and find out.
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miketranz
962 posts
msg #83577
- Ignore miketranz |
11/28/2009 11:39:50 PM
I'm no genius,I just show up every day.Inverse ETF'S are a dangerous game to play.They are extremely volatile in every time frame.They are not always 100% correlated.My advice is observe them in real time,then if you want to get involved,start of with very small size so you won't get your head handed to you.Good luck........
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trendscanner
265 posts
msg #83597
- Ignore trendscanner |
11/29/2009 7:13:44 PM
The efts are designed for relatively short term trading. The prospectus for some of the leveraged ETFs, like SDS, will tell you that they are designed for 1 day trades. The unleveraged etfs, such as DIA or SPY, are not necessarily more volatile than the Dow Jones Industrial Average or SP500 index but the 2X and 3X leveraged one, like FAS, FAZ, TNA, BGZ, can be highly volatile.
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karennma
8,057 posts
msg #83611
- Ignore karennma |
11/30/2009 12:04:04 PM
I wouldn't trade FAZ if you GAVE me the money.
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duke56468
683 posts
msg #83630
- Ignore duke56468 |
11/30/2009 5:06:49 PM
I understand the leveraged SHORTS close out the position every day at the close. Do the leveraged LONGS also close out the position each day?
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woofys
212 posts
msg #83727
- Ignore woofys |
12/2/2009 12:07:07 PM
Eman Thank you Eman.
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woofys
212 posts
msg #83728
- Ignore woofys |
12/2/2009 12:10:43 PM
Miketranz Trank You Miketranz.
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woofys
212 posts
msg #83729
- Ignore woofys |
12/2/2009 12:13:10 PM
trendscanner Thank you trendscanner.
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woofys
212 posts
msg #83730
- Ignore woofys |
12/2/2009 12:16:40 PM
karennma Thank you karennma.
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