Legal Disclaimer

All opinions expressed on this site are those of the author and may contain errors (I make mistakes) or omissions (I am not telling the whole truth).

!Thank You!

Wednesday, May 20, 2009


Same sh*t different sector.

The single most common reason for failure is a lack of practical knowledge - Thomas Kyte.

He also coined the phrase FUD (Fear,Uncertainty,Doubt) and how it encourages you not to learn anything. Does this sound familiar?

I wrote about BeWare of Leverage ETF here and Break Even Point here.

You can watch On-Demand Webinar: Getting Leverage, Going Short here

I will be the first to admit that I did not completely understand leveraged ETF and how it is design to track the daily return of an underlying security. Once you understand that, then you will understand why the instrument behaves the way it does and by design.

If you can answer the question, "If you purchase a security and it drops 50%, then how much gain is required to break even?", then you understand the math behind it.

And yes, you can you TA to trade the instrument.
Look at the charts below.

See my trade in SRS and why I decided to jump in at 19.75 with 35 cents stop.

See how I got stopped out at 20.40.

Do you see some resemblance of a double bottom?