On the Members Forum an investor wondered about her shares of SDOW ETF as today the DOW JONES Index is back climbing.
Investor Questions
Teddi, I have a different cost basis than you do on SDOW. Mine is $18.75. Frankly I was planning to hold it through the summer, but would you put stops in? It just feels like something is going to rock the market in a big way, and there might not be time to get a decent price.
Is there a lot of deterioration in SDOW so keeping it isn’t worthwhile?
Leveraged ETFS
The answer for this investor comes from understanding the deciding factors to take into account and how leveraged ETFs function.
Leverages ETFs are designed to provide 2 or 3 times the daily movement on the underlying asset. In the case of SDOW, it is designed to provide 3 times a move lower in the DOW. Therefore when the DOW JONES Index falls 3% in a single day the SDOW provides ………….. the rest of this article is for USA Members.
This strategy article, is 1900 words in length and will require 5 pages if printed.
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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