$ProShares UltraPro QQQ ETF (TQQQ.US)$ To answer those 2 que...

$ProShares UltraPro QQQ ETF (TQQQ.US)$
To answer those 2 queries below, why is TQQQ worse than QQQ? Aside from the leveraged gains of 3:1, there is also a leveraged loss of 3:1. Thus if a crash were to happen and QQQ loses 33% in the crash, TQQQ will essentially lose 99% due to the 3x leverage. this will clear your account to almost 0. So yes, market usually goes up and you will earn higher returns than putting it in QQQ. But we all know it takes a lot longer for you to recover from a 99% loss than a 33% loss as well in an event of a crash.

Another scenario would be, USD100 in both TQQQ and QQQ. TQQQ losses will also be multiplied in an event of correction or pullback.

QQQ loses 10% or USD10, TQQQ loses 30% which is USD30.

And when QQQ recovers back up by 10% which is USD9 gain, which means your total loss is only USD1.

TQQQ will go up by 30% likewise from the 3x leverage but only get USD21 which gives you a net loss of USD9.

Because you lost more during the pullback thus when it recovers, you gain less. So in an event of choppy market, you end up losing more than putting the money in QQQ.

So TQQQ is a short term hold as people usually buy it during a pullback low and cash it out during the highs.

As Always, trade safe & invest wise!