XUKS in market downtrend

I don't really want to go into shorting - I'm all for uncomplicated / low risk life.

What is everyone's thoughts of purchasing XUKS if I believes markets are heading down whilst I "sit out".

This is an inverse? Presumably traded like a stock - Volumes aren't high but looking at spread today, it looks ok.

How do indicators behave with this sort of product (OBV- RSI - Stochastic).

Finaly, looking at candle chart, it seems to gap a lot overnight, which I, in itself, don't like.

Cheers.

Try 3uks if you want more ooomph, just gotta get the timing right of course

f2calv said:

Try 3uks if you want more ooomph

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This one is freaky, it spikes a lot, what's that about?

f2calv said:

...just gotta get the timing right of course

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Can you elaborate on this please? (I swing trade)

1 day candles look a bit heretic though (most eft's I've noticed - looking at gold and oil right now) - Whilst the actual ftse 100 index (UKX) candles look a little more sane and reliable - Is it fair to say, if I am more comfortable analyzing UKX, to go with what it tells me and do a total inversion on the reading for short/put ETF's trading- If that makes sense.

Cheers

John26 said:

Can you elaborate on this please? (I swing trade)

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If you can make money swing trading XUKS then you can make 3x the amount of dough trading 3UKS as it's a 300% leveraged ETF, i.e. 1% loss in FTSE 100 = 3% gain in 3UKS and vice versa. As I said you need to watch yourself and keep it cool so obviously best to trade in small position sizes whilst you get used to it.

http://www.investopedia.com/terms/l/leveraged-etf.asp

f2calv said:

If you can make money swing trading XUKS then you can make 3x the amount of dough trading 3UKS as it's a 300% leveraged ETF, i.e. 1% loss in FTSE 100 = 3% gain in 3UKS and vice versa. As I said you need to watch yourself and keep it cool so obviously best to trade in small position sizes whilst you get used to it.

http://www.investopedia.com/terms/l/leveraged-etf.asp

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Thanks.

One question though, what's the difference between trading say 9k in XUKS and 3k in 3uks? - Surely the outcome is the same? :innocent:

Cheers

There is no difference in 9k in XUKS and 3k in 3UKS, however trade 3k in 3UKS and you'll have 6k lying around to invest elsewhere.

f2calv said:

There is no difference in 9k in XUKS and 3k in 3UKS, however trade 3k in 3UKS and you'll have 6k lying around to invest elsewhere.

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Ok, cool, that makes sense.
Thanks very much. I will look into this.

Cheers.