Why can't I just hold a highly leveraged ETF

[Anonymous No.24677237]

Seriously, if the stock market historically does 7%, after the market comes back to reality, what's stopping me doing max leverage on the S&P 500? Is there a way to do this?

[Anonymous No.24677257]

>>24677237
>4677237 [Reply]▶
>Seriously, if the stock market historically does 7%, after the market comes back to reality, what's stopping me

losses are doubled too and it turns out to be toxic to your overall profits because of (administrative fees)

[Anonymous No.24677288]

>>24677257
so you can actually do it? like yeah losses are doubled, but if you were just a rich person your losses would be doubled

[Anonymous No.24677353]

>flash crash
>liquidated for all you have

[Anonymous No.24677488]

>>24677237
You could, but ETF's can be liquidated. Like not just dumping, going to $0 and then you get a small portion back when the assets are liquidated.

[Anonymous No.24678663]

>>24677237
Yes but if you do this Mossad will visit you and if you can't recite the Shema Yisrael they shoot you

[Anonymous No.24678851]

leveraged ETFs are meant to be hold daily,
a 3x SPY ETF tracks SPY with 3x leverage for the day, if you hold it another day there's some time component fuckery that's gonna lower your expected returns compared to your risk.

[Anonymous No.24679011]

>>24677237
The leverage hurts you more on the downside than it helps you on the upside. $100 with a 20% increase then a 20% decrease leaves you with $96. If its 3x leveraged then $100 with a 60% increase then a 60% decrease leaves you with $64. These are examples with extreme numbers but the math follows for smaller daily changes too

[Anonymous No.24679034]

just look at tqqq chart, 50% per year for 10 years straight

[Anonymous No.24679556]

If you gain 10% and lose 10% you’re going to be down a bit , this happens even harder with leverage

[Anonymous No.24679798]

Just load up on UPRO and stfu. And all of you are pussies