UVXY is a triple leveraged Inverse Exchange Trade Fund (IETF). Essentially, the Dow goes up, it goes down, and vise versa. On days where the Dow crashes, as I'm writing this for example, I'll throw anywhere from 10k-70k of borrowed buying power (margin-able) on UVXY. If it drops a few points I may sell and settle for a small loss; however, typically the Dow is crashing for a reason and is more so guaranteed to keep dropping, depending on the circumstances of course.
In the five minutes of writing this, I've bought UVXY at 10.63 and it's gone up to 10.91. I put down 20k. I may sell off shortly or hold until it starts to dip again.
This may be a well known trick, it also may be unethical, or risky, but this is my method to counter and crashes/micro crashes, and I've made a fair amount off it.
Hope this can bring someone some ideas, it's a tough world out there. Happy investing!
P.S. obviously there's more to it than just buying and selling it (also there's not). I have several rules that I go buy to help me not tilt or become emotionally attached.
Submitted July 06, 2017 at 10:17AM by badbilliam http://ift.tt/2stm5tN
