Post by
CrazyTrader on Apr 05, 2023 9:01am
Simple Mathematical Lesson Relating to Leverage ETFs
Example: Starting price of a ETF $10, Starting price of commodity $10. We make the price the same just to make it easy to compare what happens.
Price of commodity to $11, that's a 10% increase of $1.
That mean ETF increase 20%, which would be $2, so the ETF is now $12.
Commodity drops back to $10. That's a decrease of $1 from $11, which is -9.090909%
That means ETF drops -18.181818% x $12 = $2.18.... The ETF is now $9.82 !!!!! NOT back to $10 like the commodity!
Commodity goes from 10 to 11 back to 10
ETF goes from 10 to 12 down to $9.82
And that's just on one up and down in price.
Now do you see what you are up against. MATH and TIME.
Comment by
BobbyBoy on Apr 05, 2023 11:49am
I get it, its risky. However, coal to gas switching, freeport on full-boil, and gas projects being shelved should send prices up over the summer as long as we have the extreme heat in the SW like last year. Am I correct? Who knows. Crazy, are you short on this? You must be given your dire comments. I laid out my ownership, why dont you?
Comment by
BobbyBoy on Apr 05, 2023 5:02pm
Jump aboard, live a little ;)
Comment by
CrazyTrader on Apr 06, 2023 11:23am
As I said, TIME is your enemy, "summer" is a long time from now with this ETF. This one you need to spot/ride the TREND.... You can't buy and hold and wait. $70,000 to $15.50 ............. Ya, I don't think I want to live that ride. All just my opinion/view/thinking.
Comment by
BobbyBoy on Apr 11, 2023 2:46pm
See all y'all at $50 in August. Stay close, I'll walk you through it.
Comment by
CrazyTrader on Apr 12, 2023 10:03am
Let me know when the Sustained upward TREND is just starting.... Until then it's probably going to be a bumpy ride down... It's a DAY Traders dream stock if they are good at what they are doing. The daily % volitility is just crazy, plus the volume is there. All just my opinion, view, thinking.... I'm not that good at trading.
Comment by
Unlucky13 on Apr 12, 2023 11:50pm
$50 in August? No way. It's $15 now at $2.27 nat gas. Nat gas would have to double to $4.50 by August for HNU to hit $50. Don't you see the possibility of nat gas going to $1.50 and HNU crashing? Feels like it's in a never ending decline right now.
Comment by
BobbyBoy on Apr 13, 2023 1:13pm
Yes, crashing is possible. Its like Crew Energy when I bought at 16-20 cents. Risk-reward, you need to buy when people are running for the exits. Unlike you when you were buying Baytex at 50 bucks. Unlucky, do the opposite of whatever you are thinking, and you will be fine.
Comment by
CrazyTrader on Apr 14, 2023 8:43am
This is nothing like Crew Energy. What didn't you understand about the math example, and the chart comparison, and $70,000 to now $14 almost...going into the $13s most likely very soon. NATGAS just went below $2...... I believe.
Comment by
satchmo6 on Apr 14, 2023 12:43am
the only thing to do is load up on HNU and wait for HND to get crushed !!!!!
Comment by
CrazyTrader on Apr 14, 2023 8:46am
You learnt nothing from the math example???? You don't buy hold and wait this this stock. You trade it. If it's TRENDING then you buy and hold and ride the trend. All just my opinion, view, thinking... MATH doesn't lie, unless there's a math error.
Comment by
deepblue on Apr 14, 2023 12:41pm
The ride to $50 starts today.
Comment by
deepblue on Apr 16, 2023 9:04pm
Looks like we'll see some more green tomorrow!
Comment by
SmokeyOB on Apr 09, 2023 12:15pm
That is funny. Gas will hopefully go up