I'm considering putting a little bit of money into TQQQ for kicks (not a lot, only 1k or so, since it's apparently ridiculously risky) and I'm a bit confused on one aspect.
It aims to get 3x the gains (which also means 3x the losses) of the overall market.
What happens when the overall market drops more than 33%?
I'm worried that if the overall market goes down -40% in a day, then I would be on the hook for -120%, TQQQ would be wiped out for good, and I'd be on the hook for that additional 20%, presumably funded from the other stocks I hold. I'm guessing/hoping that's not how that works?
Thanks for your help!
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