So I'm not buying puts because I'm just too new to options. I wont short sell because the losses could be infinite if you can't close your positions. So the vehicle I will be using to short the market will be inverse ETFs.
Here are my questions/concerns:
What is my worst case scenario?
Its an ETF so worse case should be I lose what I invested, right? Kinda like how worst case for options is premium loss if you're on the buying side.
Is holding an Inverse ETF over time still bad if I expect the market to keep going down?
Now I know slippage is a thing. But my question is if the market keeps going down would I be a fool to hold it for six months straight? Because SPXU (-3x S&P 500) Is up 74% YTD. So holding doesn't seem that bad if things are going down overall.
Would it had been better to buy and sell the ETF on the daily? Would that have yielded better results? (Assuming you time the market right)
My actual plan
Is to not play with leverage and to buy SH (-1X S&P 500). I'm only gonna put in money I can afford to lose. I'm essentially gambling a bit. Tell me everything you have to say.
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