Russell Symonds Comment On Regulatory Notice 22-08
Russell Symonds
N/A
I believe in education, not restriction.
New investors need to fully understand the risks, why it is best to only commit a small fraction of their overall available funds, NEVER go on margin, and never go all-in, and understand how the overall market can seriously affect or influence the outcome of ones leveraged trades.
But I believe that does not mean these ETFs should be restricted which might result in reduced volume and liquidity for those still allowed to trade them. Also I might add that Ive found many individual stock investments such as TSLA, for example, to be just as volatile as 3X ETFs.
Higher leveraged investments such as 3X ETFs are an important tool in the arsenal of the trader who would like to be exposed to the same movement or variation in a price but with only 1/3 of the amount committed.
A three times leverage ETF enables one to keep much more of ones funds in cash and therefore much less is needed to gain the same results. With much more cash on the sidelines, one is more able to take advantage of any future surprises in the actions of the overall market. That is how I see it and that is how I use it.
Trading a 3x INVERSE ETF gives one even more choice and flexibility as a way one could potentially benefit in the downward movement of the overall market again with minimal funding at 1/3 the amount one would otherwise need for the same degree of price action. I would like to make it clear however, anything thats leveraged, especially an inverse leveraged ETF is definitely not an investment tool, but a trading tool.
People simply need to fully understand the risks, advantages and disadvantages of leveraged and inverse ETFs, whether or not they could actually benefit, and if so, how they can best apply them to their overall trading strategy.
Russell Symonds Comment On Regulatory Notice 22-08
I believe in education, not restriction.
New investors need to fully understand the risks, why it is best to only commit a small fraction of their overall available funds, NEVER go on margin, and never go all-in, and understand how the overall market can seriously affect or influence the outcome of ones leveraged trades.
But I believe that does not mean these ETFs should be restricted which might result in reduced volume and liquidity for those still allowed to trade them. Also I might add that Ive found many individual stock investments such as TSLA, for example, to be just as volatile as 3X ETFs.
Higher leveraged investments such as 3X ETFs are an important tool in the arsenal of the trader who would like to be exposed to the same movement or variation in a price but with only 1/3 of the amount committed.
A three times leverage ETF enables one to keep much more of ones funds in cash and therefore much less is needed to gain the same results. With much more cash on the sidelines, one is more able to take advantage of any future surprises in the actions of the overall market. That is how I see it and that is how I use it.
Trading a 3x INVERSE ETF gives one even more choice and flexibility as a way one could potentially benefit in the downward movement of the overall market again with minimal funding at 1/3 the amount one would otherwise need for the same degree of price action. I would like to make it clear however, anything thats leveraged, especially an inverse leveraged ETF is definitely not an investment tool, but a trading tool.
People simply need to fully understand the risks, advantages and disadvantages of leveraged and inverse ETFs, whether or not they could actually benefit, and if so, how they can best apply them to their overall trading strategy.