XUKS in market downtrend

[John26]

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.

 

[f2calv]

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

 

[John26]

Try 3uks if you want more ooomph

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

...just gotta get the timing right of course

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

 

[f2calv]

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

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

 

[John26]

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

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

 

[f2calv]

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.

 

[John26]

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.

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

Cheers.