Direxion Daily Financial Bear 3X ETF (FAZ)

[Serpo]

Anyone understand much about this

https://au.finance.yahoo.com/q?s=FAZ


i remember someone mentioning it and they where saying that if and when there is a financial plunge ,that the only thing going up is going to be FAZ

which is geared at three times normal

[Sparky]

Anyone understand much about this

https://au.finance.yahoo.com/q?s=FAZ


i remember someone mentioning it and they where saying that if and when there is a financial plunge ,that the only thing going up is going to be FAZ

which is geared at three times normal

What is it that you'd like to know? The most important thing to know is that double- and triple-leveraged funds re-set daily, so the longer it take for the underlying asset to change in the direction you think it will, the less money you make when it finally does. If it takes too long, you will actually lose money even if your original idea was right. For example, if financials bounce up and down by 1% every day for the next few months, then finally end up down 1%, then FAZ will end up down about 1.5%.

If there is a financial plunge, lots of triple-leveraged bear stocks will be up, not just FAZ.

[Sparky]

Better example: Since September 16th, the financial sector represented by the XLF fund is essentially flat. Over the same time period, FAZ is down 12%. If your timing is right, leveraged funds can make you a lot of money quickly. But they steadily lose ground while you are waiting to be right. Sometimes they lose so much ground that you lose money even when you are eventually right.

[Serpo]

What is it that you'd like to know? The most important thing to know is that double- and triple-leveraged funds re-set daily, so the longer it take for the underlying asset to change in the direction you think it will, the less money you make when it finally does. If it takes too long, you will actually lose money even if your original idea was right. For example, if financials bounce up and down by 1% every day for the next few months, then finally end up down 1%, then FAZ will end up down about 1.5%.

If there is a financial plunge, lots of triple-leveraged bear stocks will be up, not just FAZ.

not really been into this area for a while

triple leveraged bear stocks............. farrrrrkkk............if they have their big crash thingy......


so its timing thats important , instead of a sitting waiting thing.?

[Spectrism]

Yeah- Sparky is right. The market is played so any little people putting their money in lose. The big players make their money by front-running trades with a 99.9% guaranteed win. When they are looking for bigger slices, they take positions before a known move, or if there is a known solid trend, load into that.

My worries about a triple bear type fund is that the bastards running the show will declare default and reset the day after a good drop, or that things go so badly, you won't get your money out even if your position wins big.

[Cebu_4_2]

FAZ & FAS, been there, learned that.

[Sparky]

not really been into this area for a while

triple leveraged bear stocks............. farrrrrkkk............if they have their big crash thingy......


so its timing thats important , instead of a sitting waiting thing.?

Exactly. You have to be willing to go in and out until you hit it right. It's the opposite of buying and holding.