Jordan
Member
- Joined
- Sep 22, 2007
- Messages
- 4,035
Fair enough.
To everyone not including clb09, you'll get better returns by buying an unleveraged ETF then doubling up with the use of margin through your broker.
Margin rates are rarely more than a few percentage points per year, and will very easily be made up by the difference in performance between an unleveraged purchase of a double long or short ETF and a leveraged purchased of an unleveraged ETF.
Of course, if you think you're the best thing since sliced bread and can not only predict the direction of the market, but also the moves it will make in that direction, by all means, trade leveraged funds. However, your skills would probably be best applied at a prop trading job, where you'll make hundreds of thousands of dollars per year and earn full page spreads in some of the most influential investing magazines around the world.
On the flip side, though, failure to predict the market perfectly means you miss out on easier returns, and may even lose money despite forecasting the future of a specific commodity, index fund, or fixed income product perfectly.
To everyone not including clb09, you'll get better returns by buying an unleveraged ETF then doubling up with the use of margin through your broker.
Margin rates are rarely more than a few percentage points per year, and will very easily be made up by the difference in performance between an unleveraged purchase of a double long or short ETF and a leveraged purchased of an unleveraged ETF.
Of course, if you think you're the best thing since sliced bread and can not only predict the direction of the market, but also the moves it will make in that direction, by all means, trade leveraged funds. However, your skills would probably be best applied at a prop trading job, where you'll make hundreds of thousands of dollars per year and earn full page spreads in some of the most influential investing magazines around the world.
On the flip side, though, failure to predict the market perfectly means you miss out on easier returns, and may even lose money despite forecasting the future of a specific commodity, index fund, or fixed income product perfectly.
