4Mês·

Factor certificate @ASML

Hello everyone,

I'm still relatively new to the subject of shares and I'm not sure if I'm in the right place with my question. I have invested in the ASML share and also have a factor bill on it, but I don't know if that was a good decision.

I'm aware that I could theoretically lose everything tomorrow morning, but I'd like to hear some opinions on this. Maybe the feedback will point strongly in one direction :)

How do you see the current situation of ASML? Would you say it's a solid investment or rather risky? And what do you think - should I let the factor bill run for a few more days or weeks?

$ASML (+1,2%)

2 Comentários

Stefan@Asgard19

4Mês

use a small lever

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SemiGrowth@SemiGrowth

4Mês

Factor picks are not a good idea.
1. ASML is a long-term investment and could be 10% higher or lower in a few weeks/months. This is pure gambling
2. factor stocks have the stupid characteristic of having a daily leverage, which ensures that they always end up at 0 sooner or later (if the leverage is high enough >5, for example).
This is because if the underlying loses 5% on the day, a factor certificate with leverage of 10 loses 50% and the underlying would have to rise by 10% for you to be +-0 with the factor. In the long term, all high leverages go to 0, which is why this is not a good idea for a long-term investment like ASML. I'm assuming that you bought a leverage 9 certificate because that's what it says in the name. I would honestly advise you to sell the thing immediately and profit in the long term through company shares.

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