Protection
worried the market is going down (it is) and you don't want to sell your stock but also don't want to see red everyday and can't or don't know how to protect yourself with options. $ProShares UltraPro Short QQQ ETF (SQQQ.US)$
SQQ is a 3X leveraged etf. When the nasdaq goes down it goes up 3 times. SQQ has high fees to hold so do not over hold it but it can protect your portfolio during down markets (which we are entering again)
SQQ is a 3X leveraged etf. When the nasdaq goes down it goes up 3 times. SQQ has high fees to hold so do not over hold it but it can protect your portfolio during down markets (which we are entering again)
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Moomoobo : Can elaborate on High fees to hold? Not trading it like any other stocks?
iamiam OP Moomoobo : it has a .75% operating fee, they are really meant to be bought and held in one day in a falling market (market drops 200 sqqq goes from 42-46 you buy at the start of the fall and cash out when the daily drop is over)...
if you have margin and or cash in your account and it gains more than your fees you can hold longer... personally I hold shares overnight because I am able to and I hold calls because I gamble.
*if the Nasdaq starts going down - buy SQQQ then sell it when the Nasdaq start going back up.
Rina888 : Sorry, where do you see the charges for Sqqq?
iamiam OP Rina888 : I couldnt on moomoo I had to go to their website
Rina888 iamiam OP : Hmm I never knew there is such charges, are you sure about this 0.75% charges per day? I thought this trades like the usual stock?
Will73 Rina888 : You should try contacting moo's customer service if there is a charges daily
iamiam OP Rina888 : I believe those are yearly rates calculated and charged daily, I don't buy them on moo I use them in my other accounts so I'm not sure if moomoo comes with the warning when you buy it. I get the warning but like I said I have never needed to worry about it, it gained as long as I held it, to out weigh any fees. but there are stories of people holding when the market turns and the fees and losses ate their account.
AnnSG : @iamiamwhat is the best entry price?
iamiam OP AnnSG : it is volatile and changes rapidly so giving a price is kinda silly I would say buy and hold as long as the market stays red, sell it on a green day, then buy it back
AnnSG iamiam OP : Okay. Noted and thanks Sir