The upside, JNUG is +614% this year.
The downside, JDST is down 97% for the year.
Without question, more people lose money on these products than anything else available to retail investors, aside from weekly options. But, at least in the case of options, there is another layer of oversight, as prospective option traders need approval before being able to invest. These fucking things, like cigarettes, kill scores of people and should be banned from the playing field. I am not a libertarian when it comes to stocks. Some of the shit out there should be exiled away from the public, in order to save them from themselves. While that might sound elitist, the fact remains, the only one really making money on these triple lindy asshole Direxion ETFs are Direxion itself.
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SEC is coming out with new rules on these things, I think this fall. They are OK if they are used for short-term bets but holding onto them for any length of time is insane and holding them for six months like shown in the chart should get you committed. The decay will kill you 99% of the time.
I just hope they don’t ban from shorting them…VXX UVXY are always great shorts on Pops….literally the only thing they should ever be used for. You have to be willing to sit through some moves against you, but as long as you don’t get overzealous, they turn out ok.
SEC Proposal Threatens Leveraged ETFs December 11, 2015
http://www.etf.com/sections/features-and-news/sec-rule-death-knell-geared-etfs
I am UWTI’s Bitch.
They no longer allow people in the US to trade metals using leverage. You used to be able to trade gold/silver at 50:1 leverage through Saxo or Citibank but now it’s limited to currencies only. I highly doubt they made this change to protect the customer though.
It’s buyer beware right?
sure, sprinkle some regulatory standardization in there but by all means; people should know that these are Short Term trading instruments.
Buyer beware is right. It’s like warning your little brother not to drink shots of Jagermeister after drinking a six pack of beer. Yes, he’s going to try it, but if he’s smart, he probably won’t do it again—not that I ever saw that happen in my college experience.
After a six pack? Pfffft, get that weak shit out of here.