To The Moon

Part #2: When to buy leveraged products?? A picture is worth a thousand words!!

Most people would like to bet on leveraged ETFs to amplify their gains, but is it really good?? There are ETF products that come with leverage built-in, seeking 2x or even 3x the returns of the index or sector that they track. As such, they also charge higher fees (expense ratio). After understanding the potential risks involved in such products, the next question is when do we buy leveraged ETFs??

Some examples of popular inverse leveraged ETFs (3x short!!!) include $Nasdaq100 Bull 3X ETF(TQQQ)$$S&P 500 Bear 3X ETF(SPXU)$$Semiconductors Bear 3X Shares(SOXS)$$FTSE China Bear 3X Shares(YANG)$

It is important to understand that the gain gets lower while the loss gets higher over time!! Hence it is only advisable to hold such leveraged ETFs over a short period of time (unless you are expecting a long Bull/Bear market). **Leveraged product is more beneficial for intra-day trading and passive investors who are planning to hold their stocks forever should stick to the normal 1x ETFs instead.**

Personally, I would use the Fear and Greed index as a gauge. Buy 3x leveraged ETFs when the fear index is high and buy 3x inverse leveraged ETFs when the greed is high. "Be greedy when others are fearful and be fearful when others are greedy"! As of now, I'll watch and monitor while it's at a neutral state. It will be a good time to accumulate these leveraged ETFs when the market is in extreme greed/fear, otherwise it's recommended to stick to your normal 1x ETFs. What about you? Let me know your thoughts!

@CaptainTiger@TigerStars@MillionaireTiger@Tiger_chat