Characteristics and risks of N's Bull 2x ETF (NVDU), leveraged ETF, and inverse ETF
Beginners should not try their hand at it easilyN Bull 2x ETF (NVDU) 😅
Moomoo also has a lot of beginners, so risks etc. should be properly presented in an easy-to-understand mannerThere are people who get burnt without understanding
In particular, in a place called community, I think the management side should also present risks and share them with investors (users)
Characteristics and risks of leveraged ETFs and inverse ETFs
Leveraged ETFs and inverse ETFs are riskier than other ETFs that don't use leverage because they pursue leveraged investment goals every day. You can't expect to pursue daily goals and track the underlying index over a period of more than a day. It is not suitable for all investors and should only be used by skilled investors who understand leverage risk and actively manage their investments.
Investing in funds involves a high level of risk. Unlike traditional ETFs and other leveraged ETFs and inverse ETFs, these leveraged ETFs and inverse single share ETFs track the price of a single share rather than an index, so the benefits of diversification are lost. Leveraged ETFs and inverse ETFs pursue leveraged investment goals every day. This means it's riskier than other ETFs that don't use leverage. They pursue daily goals and cannot be expected to track the performance of the underlying stock over a period of more than a day. They are not suitable for all investors and should only be used by investors who understand leverage risk and actively manage their investments. If the performance of the underlying stock remains flat, the fund will suffer losses. Also, over a period of more than 1 day, the Bull Fund may suffer losses even if the performance of the underlying stock rises, and bear funds may suffer losses even if the performance of the underlying stock declines. Investors can lose the full principal amount of their investment in one day. Investing in a fund is different from investing directly in AAPL, AMZN, GOOGL, MSFT, NVDA, and TSLA.
Direxion Equity ETF Risk — Investing in an ETF involves risk, including the possibility of loss of principal. ETFs are non-decentralized, and there are risks associated with concentration arising from ETF investments in specific industries, sectors, or companies, which may increase volatility. The use of derivatives such as futures contracts and swaps is subject to market risks that may cause prices to fluctuate over time. ETFs are not intended to and should not be expected to provide returns that are multiples of each underlying asset over a period other than one day. Please read the prospectus for additional risks, such as leverage, correlation, daily compounding, market volatility, and risks specific to the industry, sector, or company
Investors should carefully consider the fund's investment objectives, risks, fees, and expenses before investing. The fund's prospectus and overview prospectus contains this and other information about Direxion shares.
Interested people visit the website direxion.com
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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coco0217 : wow direxion.com is in English
At night, I'll read it with the help of AI.
ピンハネ OP coco0217 : Direxion is the same company as L and S. If you understand L, don't read it; if it's Coco0217, it's fine
MONKEY D TANDEMU : How many people have already been seriously burned without thinking about the risks
It's been 6 years since I started investing, but out of the 15 million invested amount, about 10 million burnt in the 1st year, and if I think about it now, it was an expensive tuition fee
Thanks to NVIDIA, I was able to crawl up from the bottom 🥹
G タロー : It really is. I have to sound the horn a little more. You can easily make money in the short term! If you think in such a short way, you'll get seriously burned.
182177489 : Thank you for your guidance as always.
Thanks to Pinhane, I've been able to learn about investing without much hesitation. It's definitely necessary to pay tuition even though you get a small burn
阿弥陀如来 : Should I quit if I'm a beginner? I was wondering if I should buy it
ピンハネ OP 阿弥陀如来 : Wouldn't it be nice if we could properly analyze daily price movements with short-term holdingsSuper short term is good though
阿弥陀如来 ピンハネ OP : It becomes throat. I mean it's for date training. Even though Moomoo Securities is cheap, fees are now charged for round trips, so there's no reason to buy and sell over and over again on date trading.
Unless it's Japanese stocks.