So in the past few months is started trading options and i m...
So in the past few months is started trading options and i made some gains. Not a lot but at least i didnt lose all my money. So now i have been thinking of cutting my position in QQQ which makes up half of my Portfolio and put it in TQQQ but after some research i noticed that a lot of the articles i read actually say that a QQQ will outperform TQQQ longterm cause of the possibility of a crash and the much larger gain needed afterwards to break even.
My question now is am i really taking that much of a risk with TQQQ and can i not mostly eliminate that risk by just putting a trailing stop loss at like 15% as the Danger basically just lies at a large Crash like 2008 and not smaller corrections or am i missing something?
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Investing 101 : Your stop loss would have been activated this week and we are not even near a correction yet, don't say a crash. The idea of TQQQ is leverage. You don't leverage long term. You gonna wipe your account. You short or long it short term to get that leveraged gains. But anything long term on leverage ETF is called greed and greed kills. You have not seen it, but I've seen people lose their entire investment accounts all because they wanted to get 3x the gains..
Enter TQQQ during market bottom of pullback. And sell it after it hits a new high. Or short it when market is falling like now.. And cover after it bottoms. That's how you use it.
Investing 101 : If TQQQ is meant for long term gains and can help you outperform markets. Ask yourself, why isn't everyone doing it. Hedge funds can do it and easily outperform the index. But we know 95% of hedge funds do not outperform the S&P 500 index. There is a reason they don't do it. And so you shouldn't too.