11Mon·

When the blood flows...

Let's go :)

07.04

WisdomTree NASDAQ 100 3x Daily Leveraged

Bought x2 at €93.93

€187.86

10 Comments

Sandy T.@Esperanza

11Mon

Lets go, if then we die together 😂

•

Tim G.@equity_enthusiast_2103

11Mon

Do you think that will increase?

•

Frank K.@Gazza

11Mon

@equity_enthusiast_2103 otherwise I wouldn't buy it. Everyone has to decide for themselves whether it's smart to use a lever for this

•

Tim G.@equity_enthusiast_2103

11Mon

@Gazza Thanks for the answer, I don't know my way around sorry. How long do you plan to hold it for or when do you think it will rise?

••

Frank K.@Gazza

11Mon

@equity_enthusiast_2103 only really as a weekly savings plan. Shouldn't hurt if it falls drastically. Today I took the opportunity to make a one-off purchase. Otherwise 25 euros a week

••

Money Game@MoneyGame

11Mon

This way and no other!

•

Pedro M.@serkeftin

11Mon

I've also bought it, although bit higher than you

•

Chiefwiggum@Hidalidsch

11Mon

Very quick question, does it make sense to buy the daily leverage if you expect it to rise again in the long term anyway or do you have to pay attention to anything with the etf?

••

Frank K.@Gazza

11Mon

@Hidalidsch A triple-leveraged Nasdaq-100 ETF is risky for several reasons:

1. leverage

A 3x leveraged ETF attempts to amplify the daily return of the Nasdaq-100 by a factor of 3. If the Nasdaq-100 rises by 1% in one day, the ETF should rise by approx. 3% - but also vice versa: if the index falls by 1%, the ETF falls by approx. 3%. This means that not only gains but also losses are disproportionately amplified.

2. daily rebalancing

The leverage always refers only to the daily performance. This leads to a phenomenon called path dependency or distortion through volatility (volatility decay):

If the market moves sideways or fluctuates strongly, the ETF can underperform over a longer period of time, even if the index as a whole rises.

Example: +10%, -10% in the index does not result in 0% in the leveraged ETF, but often in a net loss.

3. extremely high volatility

The fluctuations of a triple-leveraged ETF are very high. A relatively normal market setback of 10% can lead to a 30% loss for the ETF. This requires strong nerves and good timing - which is difficult in practice.

4. not suitable for long-term investments

These products are intended for short-term speculation or day trading, not for buy-and-hold. Holding them for the long term exposes you to unnecessarily high risks.

5. cost structure

Although the running costs usually appear moderate, implicit costs can arise through daily rebalancing or through spread and tracking errors.

••

Maxi@mhu

11Mon

@Gazza if $QQQ3 then only with a clear strategy. There are some trend-following models that are suitable for long-term B&H

•