Who Dares Sometimes Wins
TQQQ, or, The Battle Of Limbic and Conscious Brain Functions Playing Out Live
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Wen Bull?
TQQQ, the Nasdaq’s amphetamine-fueled troubled cousin, is a great way to make some solid money if you know when to play it. Get it wrong and, together with its other 3x leveraged brethren, it can hurt you. Never leave home without a stop-loss, is our view on this one. Speaking from experience, though you can always average down and wait longer than expected to make gains, the drawdowns can leave you feeling, well, drawn and down. And that is stress that you don’t need.
In staff personal accounts in recent days we’ve pocketed some gains in short market instruments - SQQQ has been good to us, we have some locked-in gains (by way of moved-up sell stop orders) in SPXS, and we cashed up a modest but worthwhile profit in UVXY earlier today.
Right now the market looks to be recovering some of its losses on the day. And that’s when your limbic system is sat urging you to buy long. And if you leave it unattended that self-same collection of primeval nerves will be egging you on to supersize yourself. “Leverage, my precioussssss” says the brain stem. “Three … times …. leveraaagggeee…..”.
The trouble with the limbic system is you just can’t trust it. It is as likely to be persuading you to run into the fire as it is away from the fire. Some days it wants to fight, others, to flee. Your limbic system trades like Joe P. Retail.
Big Money doesn’t trade on fleeting impulses. Otherwise it would have become Small Money long ago. Big Money thinks like this:
A Low-Risk Play On TQQQ
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