/biz/ - Business & Finance

>>20269058
>No problem. I wrote this in the last thread:
>A bet for leveraged ETFs like TQQQ is a bet against volatility since these instruments do best in a low volatility environment. Incidentally low volatility usually means rising prices and increasingly high volatility usually means a crash like in March. A good way to visualize it is with a 200 day moving average. If the price is above the average, volatility is typically low and the environment is good for leverage. Below that average is bad and leverage works against you. The upshot is this: put a 200 day moving average on the underlying chart, in the TQQQ case that's QQQ, when QQQ is above the average, go all in on the leveraged TQQQ as that's when you'll get the best results. When unleveraged QQQ is below the 200 day moving average sell your TQQQ until you're back above the line. Maybe give yourself a percent or two of breathing room so you don't get chopped up.
>To wit, if you look at the QQQ chart now with the 200 daily average overlayed, you'll see on March 11th we went under the average. The TQQQ price on that day was $63 and on April 7th we went back above QQQ's 200 daily average at which time TQQQ was $53. Had you sold then bought on those dates you would have missed the worst of the bottom and gained 16% to boot. But look at the QQQ chart and notice the price was $200 on both of those dates. So why was it better to sell and buy on the TQQQ chart and why did it gain 16% versus being flat on QQQ? Because volatility was increasing, working against TQQQ when you sold but decreasing, working for TQQQ when you bought. If you don't know when to get out of leveraged ETFs cuz you're banking and don't want to waste gains, but you also don't wanna lose big on a crash, this is as good a strategy as I've seen that requires no discretionary trading.

dude just buy any dip lmao

>>20236298
>Do you not see a glaring issue with what you just typed. How can a whole segment, the in-person segment (which is a very large segment), of the economy be "dead" while another is reach new highs based on the expectations that its revenue will soar even though large portions of the population, who happen to be part of the in-person segment of the economy, will have restricted cash flow.

>>18944015