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I personally keep it within $25000. However there are lots momentum traders who makes a living on trading actively with this method. If you search on youtube you will find all kinds of theories and practices on TTM squeeze and momentum trading. I have a full time job so this bit of swing trade is on the side for me to make a few hundred dollars from time to time. But I do have to thank Rusty to have led me onto this idea.
 

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Aren't you guys worried about getting wiped out while holding TQQQ long?

It was only a few weeks ago when the index crashed 10% in a single day. I think it's possible for QQQ to crash perhaps 20% to 30% in a day, at some point.

If that happens while you're long TQQQ, there would be a drawdown of something like 60% to 90%. During such incredibly volatile periods, brokerages and market quotes can often become unstable and make it impossible to trade... leaving you trapped long. I've only been investing for 20 years and already I've seen a handful of days like this, when it was impossible to get a trade fill, for example, the brokerages can't get quotes, so they stop routing orders, or there is no order matching on the exchanges in practice.

The leveraged ETFs of the TQQQ style have mandatory daily rebalancing. That means that they lock in those enormous gains, since their mandate is to track single day movements.

In this scenario, your losses would likely be unrecoverable as TQQQ will force you to lock in the losses at the day end rebalance.
So far I have never had a problem getting filled on a stop or market order. I am aware of the drag caused by the leverage but don't worry about it because I don't hold TQQQ long term. My preferred holding period is weeks or months but there are times I have gotten stopped out after a few days. These and other concerns are the reason it has taken me 2 years to go from paper trading, to trading 100 shares, to trading 1000's. The TQQQ trades from 25 million to 100 million shares a day. I don't think an order for a few hundred, or a few thousand shares will paralyse it. One reason for trading an ETF rather than a stock is that it is not prone to radical moves based on some unexpected news. At least not so much as a stock is. I know there are circuit breakers that halt trading in individual stocks but don't think they have ever been applied to an ETF.
If I saw evidence of such danger I would switch to something broader based like the S&P.

Later... You mentioned the 10% drop in TQQQ last week. It was more like 19% high to low in 3 days. At the time I was long 500 shares and got stopped out with a small profit, and got back in again a couple of days later. You can do that now with online trading and my commission is only $7. I did have to pay more to get back in, than what I got for my old position but that is the price of playing it safe.
 

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Trading in crazy stocks is gambling. It's like investing in the late 1990's. Everyone knew those stocks were probably worth nothing. But they were going up. People didn't knew some would win, probably, but many wouldn't. It becomes a game.

Unfortunately there is going to be a little unwinding. Fortunately, most underlying solid companies aren't impacted, so there isn't too much actual underlying systematic distortion. Billions might be lost but not trillions.

This is pot stocks all over again for some securities. We know how it is going to end. We just don't know when. Who knew that a pot greenhouse that cost $10M to build wasn't actually worth $2 billion.
 

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9 AM Thursday June 19
Raised my stop to 86 this morning, break even on my position so I now have no risk on this trade. Don't like the way TQQQ has been acting.
I agree that markets are manipulated. They aren't even sneaky about it, Federal Reserve and government actions to prop up the financial markets are on the front page of every financial paper.
That means traditional, supply and demand, security analysis and investment no longer holds water. By rights the stock market should be at about half the present level if not lower. The only sensible thing to do is look at it like gambling in a rigged casino, and look for an edge. I think I have found one.

Speaking of pot stocks - I made $10,000 on Canopy Growth last year using purely technical methods. Have not looked at it lately.
 

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There have been a lot of gaps in the market of late which have been mostly up @ the market open. When the gaps start appearing on the downside @ the market open TQQQ could open well below the stop level
 

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I think Rusty, lonewolf, MrBlackhill and some others here do some active trading and speculation. I've heard QQQ and TQQQ mentioned a few times.

For the active traders, can I ask, why don't you apply the same skills to TVIX instead? In a single day, you can get a decade worth of returns. TVIX is up 65% today and at one point was up 70%.

If it's so easy to trade QQQ and TQQQ, catching the bottoms and tops, then why not trade TVIX instead and get a full year of investing done in a few hours?

(Just to be clear, I would never in a million years do this myself, but that's because I have no ability to predict short term market direction nor volatility)
It is best to trade what you know or see. I like to play based on wave count & or price charts, with using cycles, astro, momentum & sentiment to help guide me with the count. Not everything makes a clear price pattern for my eyes to follow. There is structure in everything though it is not easy to see the structure in everything. The market is always right if the market moves against me I was wrong. I am wrong a lot which is why I do my best when I am not in the market all the time & only play the best set ups.
 

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TQQQ now 101.49 and I am long 2000 shares @ 85.9975 as of the 16th. So am up $30,000 and change in 8 days. Since my first stoploss order was @ 78 my max risk was under $16,000 with the stoploss raised to 80 a few days later and then to break even. How much longer will it keep going up? I have no idea but the old high was 118.8 on Feb 19.
This trade as I described, works out in my favor 3 times out of 4 and the gain is typically some multiple of the possible loss. This will probably be the last time I mention this trade unless in answer to a specific question. Feel free to go on bombarding me with tomatoes but kindly take them out of the can.
 

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Discussion Starter #29
TQQQ now 101.49 and I am long 2000 shares @ 85.9975 as of the 16th. So am up $30,000 and change in 8 days. Since my first stoploss order was @ 78 my max risk was under $16,000 with the stoploss raised to 80 a few days later and then to break even. How much longer will it keep going up? I have no idea but the old high was 118.8 on Feb 19.
This trade as I described, works out in my favor 3 times out of 4 and the gain is typically some multiple of the possible loss. This will probably be the last time I mention this trade unless in answer to a specific question. Feel free to go on bombarding me with tomatoes but kindly take them out of the can.
Congrats Rusty, those are massive gains.

I'm not trading anything quite as ambitious, but I bought some TAIL today to add 'put protection' to an existing SPY position. After seeing my SPY gain so much value over a couple months, I want to add some downside protection even if it means limiting the upside somewhat.
 

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I just noticed this thread and thought you guys might be interested in this:

I used that trading program off and on for over ten years. Its a very sophisticated program. You can even design your own technical indicators.
 

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I think Rusty, lonewolf, MrBlackhill and some others here do some active trading and speculation. I've heard QQQ and TQQQ mentioned a few times.

For the active traders, can I ask, why don't you apply the same skills to TVIX instead? In a single day, you can get a decade worth of returns. TVIX is up 65% today and at one point was up 70%.

If it's so easy to trade QQQ and TQQQ, catching the bottoms and tops, then why not trade TVIX instead and get a full year of investing done in a few hours?

(Just to be clear, I would never in a million years do this myself, but that's because I have no ability to predict short term market direction nor volatility)
If you're interested in trading vol, you can just trade VIX options directly instead of a derivative of a derivative of a derivative.
 

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However I don't let it fall to my stop loss position. I usually set a limit sell. Once I sell some shares then I buy back some at a lower price. I also look at the chart for Bollinger bands, MACD, RSI for signals.
 

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Happy Canada Day! I am happy to report that I made $13430.97 by trading TQQQ this year so far.
Congrats, that's quite a bit of profit.

You might want to also build a plan in case QQQ gaps down 10% or 15% one morning. Remember that when the market gaps down, stops won't execute exactly at your stop price. Sometimes the stop can result in a fill that is considerably lower than your stop.
 

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Was this a typo? TVIX still appears to be an insanely popular trading vehicle.

I don't have the skills to trade TVIX, TQQQ or SQQQ myself but it's good to hear that others are doing well with them.
It was announced on June 22 that TVIX was to be delisted , as of July 12. They may trade on an exchange up to July 10, after that they may trade over the counter. Have seen reports that Credit Suisse will no longer support these delisted ETNs but will redeem them.
 

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Happy Canada Day! I am happy to report that I made $13430.97 by trading TQQQ this year so far.
Congratulations, that is excellent. Can you tell us what sort of method you use?

I have done well myself with this trade. Meanwhile my "safe conservative long term dividend paying investments" are in the hole.
 

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This morning I closed out the trade mentioned above @105.06. I added 500 shares along the way so I had 2500 @ an average price of 87.4. That means I made $17.66 per share for a total of $44,150 in 17 days. Will probably get back in, in a few days, if there is a pullback. I am getting leery because TQQQ has gone up since March and this run up is long in the tooth so I may just lay off for a while. Depends how the chart looks.
 
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