>>1033969 You'll go broke even if oil does go up. Leveraged ETFs are strictly for trading. Buying and holding will chew up your investment as it fluctuates. Read. Next time do some fucking research before you start shopping for that Lamborghini. >Lord, why am I the one who steps up and prevents fools from being parted with their money?
>>1034931 It will decay a lot if the base index is very volatile, yes. But oil has not been jumping around with a lot of volatility, you've seen a gradual decline.
If the base security/index goes up however the leverage will only multiply returns (see SSO or something compared to SPY).
the reason why I would do this
>I am betting on a rally/oil going up in the future >I don't want to fuck around with margin accts and put my balls on the chopping block >the costs on long term calls would fucking eat me alive >don't want to fuck around with oil stocks, the smaller companies could go bankrupt before a rally and the larger ones would make far more modest returns >a couple grand isn't much >geopolitics (ISIS, russia) is a reason for a lot of this
>>1034963 I never said that an oil bet would make me rich. This is pretty much a gamble/experiment for me to fuck around with leverage and go long, since I don't want to fuck around with margin (due to the inherent risks of margin) since I have very little money.
Worst case I lose like 2k. But there is fair chance that if I go long I will make 10k+.
>>1034932 xDDDD it's just a mee mee bro calm down :DD
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