Does anyone buy SQQQ as a hedge for a market downturn?

[MarathonMike]

I bought it once and got my ass kicked as the market took a sudden upturn earlier this year. Does anyone use SQQQ a hedge tool and if so, when and how do you do it?

 

[Dan Stubbs]

I bought it once and got my ass kicked as the market took a sudden upturn earlier this year. Does anyone use SQQQ a hedge tool and if so, when and how do you do it?

bank stocks silver.

 

[william the wie]

Sorry I write options on low volatility undervalued issues selling for less than $10/sh. They tend to be less glamerous than a toilet brush. But reinvested premiums and dividends makes sleep come easy. I have all of 8 issues now when they reach a point where I can absorb $16K of issues all at once without my getting hit with a margin debt I will slowly expand my investment ceiling

 

[BuckToothMoron]

I bought it once and got my ass kicked as the market took a sudden upturn earlier this year. Does anyone use SQQQ a hedge tool and if so, when and how do you do it?

It’s a triple ETF, so it’s going to be hyper sensitive to market moves. It is not designed as a hedge, its designed for day traders to play. I don’t buy any triple ETF’s, and I would suggest if you do, you should be sitting and watching the market the entire time you own it.

 

[william the wie]

I bought it once and got my ass kicked as the market took a sudden upturn earlier this year. Does anyone use SQQQ a hedge tool and if so, when and how do you do it?

Mike review what you already know or can find out easily and then see if what you are doing makes sense to you.

@95% of all stock appreciation since 1929 is due to dividend reinvestment.

Warrant and later option reinvestment of returns are another significant source of appreciation.

discounts on direct purchases from the company's treasury and buybacks also count.

Where does outsmarting anyone else rank on the scale?

 

[MarathonMike]

I realize SQQQ is a volatile ETF designed to amplify returns in a market downturn. I was wondering if anyone employs SQQQ or any shorting instrument as part of a hedge strategy and how they implement that if they do.

 

[Paul Motter]

I bought it once and got my ass kicked as the market took a sudden upturn earlier this year. Does anyone use SQQQ a hedge tool and if so, when and how do you do it?

It’s a triple ETF, so it’s going to be hyper sensitive to market moves. It is not designed as a hedge, its designed for day traders to play. I don’t buy any triple ETFs, and I would suggest if you do, you should be sitting and watching the market the entire time you own it.

I agree with this, plus it has a low selling price which tempts you to buy more shares, so when it moves it can kick your ass. I have traded the Direxion 3x index ETFs a fair amount and they can be great when they go up, but you MUST be ready to get out when they go down.

I prefer to take SPXL or TQQQ on the upside, I rarely play the downside, it just does not act the way you would expect. The spreads are too wide and tend to have no middle ground, and they shift with no notice at all.

 

[william the wie]

Devise an autopilot buy low, sell high strategy.
Here's a simple one
Write puts on issues you want to get.
When one gets put to you write calls that get you out at a high percentage gain if exercised.

 

[william the wie]

Writing puts and calls even on one of these rockets will reduce your losses

 

[Natural Citizen]

We have a bear market going on, Mike. Stay away. Seriously. Everthing is distorted. We're gonna start seeing a mass exodus and a lot of stock is going to be sold in the very near future. And suddenly.

 

[william the wie]

We have a bear market going on, Mike. Stay away. Seriously. Everthing is distorted. We're gonna start seeing a mass exodus and a lot of stock is going to be sold in the very near future. And suddenly.

If so, now is the time to sell not hold. Capital gains are generally "Fool's Gold". relying on anything but cash returns from dividends and option premiums almost always disappoints. I can't time the market so I don't play the market.