Lot of post abt tqqq recently, but a lot of people seems they don’t understand volatility decay

Volatility decay basically means if the market goes flat for a certain period of time, you are going to lose money.

So, for TQQQ, to dumb it down

If the market goes up next 10 years, you gain 3 times.

If the market goes down next 10 years, you lose 3 times

If the market goes flat next 10 years, you still lose (not 3 times, but you are still losing)

It's like a game of rock, paper, scissors, if you win, you win, if you lose, you lose, if it is a tie, you still lose.

Assuming in the game of investing, the odds of you winning is slightly bigger than the odds of you winning, given long enough time, you will always come out at the top. But with TQQQ, because in a tie game you still lose (albeit not as much), thus give it a long enough time, you will lose. This is why they said that given a long enough time horizon, any triple leveraged ETF will go to zero.