7Mes·

Hey Dear Getquin Community


Does it make sense for a long-term investment (20-30 years) to invest in the Nasadaq 100 ETF 3 Lev $QQQ3 (+3,12%) or does it make more sense to choose and save in the normal Nasdaq 100 $CSNDX (+1,14%) and to save ?

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20 Commenti

immagine del profilo
If it drops by 30%, you lose everything.
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immagine del profilo
@OnlyETF as if the nasdaq would fall 30% in one day
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@OnlyETF simply insert a stop loss
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@parlania that's what i ask myself ?!
immagine del profilo
@OnlyETF @Kalle2 Don't worry, there are control mechanisms on the stock market that prevent such strong fluctuations. They are called circuit breakers. If the S&P 500 falls by 7% from the previous day's closing price, trading is interrupted for 15 minutes. At 13% again and at 20% trading is stopped for the day.

The Nasdaq 100 and the S&P500 are similar enough that -30% for the Nasdaq should be out of the question. Although of course -20% is also unattractive if they are triple leveraged.
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immagine del profilo
@OnlyETF it cannot fall by 30% in one day - at -20% all trading per day is suspended until the following day.
immagine del profilo
@JimPanse86 But then you can't sell at -20, you have to wait for the next day and then you are at -30
So my savings plan is up 68%, you just have to set a stop loss. The €25 a week won't hurt either if they're gone ;) I'm curious to see what @TopperHarley has to say about it 😜
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immagine del profilo
I've been looking at the $QQQ3 for a really long time and I currently have over 100K in it myself. As long as the Nasdaq doesn't fall 30% in one day, there is no risk of a total loss.

The biggest risk is psychological. In a bear market, the ETF can fall by 80 or 90%. If you have all your money in it, that is of course psychologically brutal.

Just take a look at the long-term chart and there are also various backtest calculations which show that the returns are astronomically high. So far it's worked great and I don't see why it shouldn't continue in the future.

However, I would tend to get into a leveraged ETF after an index fall of at least 20% and not at an all-time high.
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immagine del profilo
@MoneyGame do you sell when you fall below the 200 MA?
immagine del profilo
@qube_inv No, I don't intend to. I know that many people do this to reduce volatility and get back in when the 200 MA is exceeded. In that case, I'll just sit it out.
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@MoneyGame Hi, as I am still learning about the risk of leveraged ETFs, I wanted to ask what you mean by exceeding the 200 MA? (Because I don't understand that)
immagine del profilo
@Lindi87 MA stands for Moving Average. In other words, the moving average price of the last 200 days. Many who trade leveraged S&P 500 and Nasdaq ETFs sell when the price falls below the "200 MA price" and only get back in when the price exceeds the "200 MA price" again. This avoids the phases in which the ETF has fallen by 80+% in some cases. https://www.reddit.com/r/LETFs/comments/19bbdcu/200_ma_confusion/
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@MoneyGame Thank you for the quick reply
immagine del profilo
Definitely not for long-term investment!
immagine del profilo
Neither. In the long term, I would rather diversify than bet on a specific focus.
immagine del profilo
The $QQQ3 is a gamble
immagine del profilo
It can make sense if you are aware of the bet. Higher risk could mean more return, but also more loss if the bet doesn't work out. There is no right or wrong, because nobody knows the future. Some need more security, others risk more. Only you decide which ratio is the right one.
So far it has gone well, it can continue to do so, you just have to be aware that the risk of it falling sharply is also quite high
immagine del profilo
There is also an intermediate route, the $LQQ (Nasdaq x2)
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