wearmanyhats

Imagine if you went to Las Vegas, sat at a poker table and put a $10 bill on your hand.  Let’s say that you won, but as you were raking in your winnings, the dealer suddenly looked at you and said, “Oh, by the way, you actually make three times what you normally would be raking in right now.”  Imagine what you would think, how excited.  What if the dealer looked at you and said, “I don’t know if you knew this or not, but you didn’t just lose your $10, but rather $30.”  What would you say then?

Well, in a way, when Direxion launched its newest bull market and bear market ETFs, that’s exactly what happened.  These ETF’s on steroids are weighted 300% to super hype the returns (and losses) on your investments.  The result: a volatile way of making money.

Do you want to insure your investment?  Consider this strategy.  First, purchase a Direxion  Energy Bull 3X and the Direxion Energy Bear ETF 3X.   If the sector moves upward suddenly, the Bear ETF will lose money while the other gains.  However, let’s say you have a feeling that energy is going to eventually go bounding upward, and you want to just play it straight.  An ETF that is set to go up 3x will give spectacular gains.

You can buy these directly from your brokerage, and you can bet speculators have been having a great time with them.  These are so hot, I recommend you check out that prospectus.   Know exactly what you are getting into when dealing with them. Good luck with however you choose to work with them.

Here is a list from IndexUniverse

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