I am glad you pointed out the theoretical risk vs actual incurred loss. Yes, a lot of the so called experts who make their living by writing instead of trading, love to mix up theoretical risk with actual loss, b/c they can't tell one from the other.
Putting 100% capital at risk certainly does not equal to actually losing 100%.
What we are talking about is a situation where we are comparing the high risk of losing a maximum 4% vs a high risk of losing MORE than just 4%. If you are 100% in 3x, you can lose 4% in one day. lol
Yes. If you are skillful enough, AND lucky enough, then you can put 100% at risk w/o actually incurring real losses. Exposure to risk does not equal to actually incurring losses.
The basis of my post is based on the scenario where people put all their money into 2x or 3x etfs in anticipation of a Pee3. Then losing 3-4% can be a daily occurence.
Earl, you trade in and out of ETFs and you don't go all in. So a lot of the issues that pertain to position trading are simply moot points as far as your situation is concerned. But that doesn't mean all those concerns are moot points in general.
Earl,
I am glad you pointed out the theoretical risk vs actual incurred loss. Yes, a lot of the so called experts who make their living by writing instead of trading, love to mix up theoretical risk with actual loss, b/c they can't tell one from the other.
Putting 100% capital at risk certainly does not equal to actually losing 100%.
What we are talking about is a situation where we are comparing the high risk of losing a maximum 4% vs a high risk of losing MORE than just 4%. If you are 100% in 3x, you can lose 4% in one day. lol
Well, I am glad you stuck it to the marketmakers then. lol
SC,
You're right, I'm not about to do either one of those alternatives. I wasn't meaning to insert me into the discussion.
I was just seeing the phrase “at risk” used to describe two completely different levels of risk.
By the way, in case you didn't notice, we made it to that 119.35 print!
Thanks SC!
Just purchased SPY May puts. May the force be with me.
Yes. If you are skillful enough, AND lucky enough, then you can put 100% at risk w/o actually incurring real losses. Exposure to risk does not equal to actually incurring losses.
The basis of my post is based on the scenario where people put all their money into 2x or 3x etfs in anticipation of a Pee3. Then losing 3-4% can be a daily occurence.
Earl, you trade in and out of ETFs and you don't go all in. So a lot of the issues that pertain to position trading are simply moot points as far as your situation is concerned. But that doesn't mean all those concerns are moot points in general.
oh you are too sweet, lots of sexy hugs !!!
Like i said, Anna is THE option expert. 🙂
Sorry for not responding sooner.