anyone with a margin account, here is a good way to make money in the stockmarket

[pico]

http://www.darwinsfinance.com/short-etf-inverse-leveraged-direxion-3x/

due to the daily rebalancing of leveraged etf. you can pretty much make profit in any market. just read the article, i am pretty convinced.

[G's pks]

margin hurt me in the tech bubble of what 01...had a friend lost his whole inheritance.

margin calls..

[pico]

fas and faz both are losers

http://finance.yahoo.com/echarts?s=FAS#chart1:symbol=fas;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

http://finance.yahoo.com/echarts?s=FAZ#chart1:symbol=faz;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

[tonyhomo]

Too risky

[tonyhomo]

Too much risk involved

[pico]

if the market takes off, you need to buy some options

Hi Johnny, you’re right about starting in March. That was about pivot bottom for the worst decline and then rebound in our generation. That’s the chart I included in the “Bad Chart” example at the end. If you just left the positions open you’d get slaughtered. That’s where the active management comes in. Here’s how you would have made a fortune…Let’s say once FAS was up 50% and running more daily, you said to yourself, “I better take some action here and protect my position from further losses”. You guy and buy puts on FAZ. If FAS continues to run, your FAZ puts come into the money. If FAS falls, the puts will expire worthless, but the double short strategy comes way back into the money because of the early volatility the other way.

While it’s not perfect and you can’t predict what to do in advance, there are ways to offset, and even benefit from a runaway market – but yes, as I stated emphatically throughout, you’ve gotta realize the risks involved and manage the positions closely.

[flyingillini]

My life is all about margin and calls

[Boner_18]

Ah the double short leveraged ETF trade. I wanted to put this on when the FAS and FAZ reverse split and I determined that it doesn't necessarily work.

This plays on the criticism that leveraged etf's will suffer decay due to daily rebalancing, and they often will. However, anyone that understands how this decay works should also be aware of the compounding that can occur with daily rebalancing (if all the forces are opposite those that create decay).

In the end the double short or double long trade with these leveraged ETF's becomes a play on upwards or downwards volatility, and if you want to play that you will get better returns (largely due to margin requirements) by playing VIX ETN's or other volatility plays.

Good luck to you tho.