Tuesday, January 20, 2009

the stuck market

The dangers of trading leveraged ETFs when you're betting it all and not using any discipline: (from the Google message boards):

"I am really sad that even market is down more than 5% and financial
sector down to second biggest percentage day drop in the history. Its
10:30pm and now news about Fed & Obama plans to tackle this financial
crisis. If nothing arrive by tomorrow then we may see another drop.

This is very serious situation for me as I am down from 55k to only
11k i.e, 80% decline. I don't even hope if I will be able to recover
my previous losses or not. If I am unable to recover my money in the
coming future then I may decide to quit stock market and invest in
bonds & fix percentage gain."

He was betting it all on the FAS ETF, a 3x financial bull with no stops. Went from 25 at the beginning of the year to 7.60 yesterday. Ouch.
Bri and I had a nice run through the snow yesterday with Alisha Lion, while her husband Joe played with the dogs at Bond Park. There were a bunch of people riding sleds down the hills at the park, check out Bri's blog for info on all that. Then we both rode the trainer later in the evening. Today there's a frozen layer of snow/ice on the ground but it should finish melting by tomorrow.

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