2Wk·

Too much GQ, YT, Reddit, financial flow & co. hung out :-) -

The experiment/bet started € 250 p.m. / € 3,000 p.a. in the holy Amumbo for the next 1-2 years and then see what happens after the next correction/crash.

(>20 years until retirement, will just sit it out).

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€249.99
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15 Comments

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Hehe sitting out minus 34% in one day on the NASDAQ will be fun 😄
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@SchlaubiSchlumpf today my Nvidia shares went from +4000% to 3,800% down 200% in absolute terms, or ~€3,000. Just sit it out 🤓
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@Papiertiger With a triple-leveraged etf, however, I have 0% in one day at minus 34% 😁
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@SchlaubiSchlumpf Psst google "circuit breaker"
It's been around for over 10 years 😉
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@Chandra I assume you mean a stoploss? Of course I can do that. But then I also accept that I might miss out on a quick intraday rebound, right? But I just wanted to point out the risks. If you manage them and can handle them with risk management, or accept them, that's okay. As far as I know, the case I outlined did not exist. But I haven't studied the share price performance extensively 😁
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@SchlaubiSchlumpf Stoploss? No, no, no. Please really google what a circuit breaker is on the stock market. It has nothing to do with a stoploss.
Circuit breakers ensure that the stock market cannot fall 34% a day because trading is suspended long beforehand.
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@Chandra I see. I didn't know the term then. I had heard of the phenomenon before. That's actually a good point. Of course, the only thing that remains is path dependency in general. But the topic is well known.
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@SchlaubiSchlumpf However, a crash also offers good opportunities to get into leveraged ETFs. If the Nasdaq 100 fell by 25%, I would get into $QQQ3 properly. (After checking the KgV again, of course) 😄
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@Chandra especially after a crash, I would throw myself into it if necessary. At least with a few % of my portfolio. But I think that would only be interesting for me after 25-30%. Before that, I would be too afraid of path dependency. Of course it can continue like this after a 25-30% drop, but you're already part of the way there 😁
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@SchlaubiSchlumpf the most important thing with the leveraged Nasday/S&P things. 🥚 Have and hold bluntly. Anyone who entered the Nasdaq 3x in Dec. 2021 at the ATH had to hold until June 2024 just to be +- 0.
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@Papiertiger and these were only minor disturbances by stock market standards 😁
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Welcome to the Amumbo gang!
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Finally you can see the $CL2 here again
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What would happen if the index lost 50%? Is the Amumbo then at 0% and bursts?
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@Mexico2035 Like any leveraged product, it would be zero if the index fell by 50% in one day. But if the index were to fall 50%, the market would be technically stopped much earlier and we would have a global crisis in which we would have other problems than an old ETF.
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