也谈谈 jnug 和 jdst, nugt, dust

All these are 3x ETF. 就是毒品。短期非常过瘾。长期非常有害。

JNUG and JDST:  JNUG from 40 -->27, JDST from 40 --> 10 (FROM Oct 4 2013 to last Friday). This is due to the decay.

So,

Rule No.1: They are not for long term holding. You can not hold and average down and wish to recover someday long term. Be ready to stop loss as soon as you buy them.

Rule No. 2: When you are trading JNUG and JDST, you cannot afford to not checking the market several times a day at least! Things changes very fast and you need to adjust your strategy accordingly!

Rule No. 3: You cannot just follow what 牛人 tells you to do. You have to do your own analysis and be on top of that.

So, what should you do and which one to buy?

1. Check the trend: Is the gold miner in a bull or bear market? Check underling index GDXJ, not JNUG.
2. Determine which one to trade
3. I prefer to trade on one side to be focused.

So, what is current trend

1. GDXJ is having higher low and higher high..... Seem to be rising market
2. GDXJ is still in the bottom from multi-year down market. Last high was Oct 2010, almost 4 years, at that time it was 160.

So GDXJ is in the bottom ready for a turn around..... Seems to me any betting against the trend will not be wise.
 
So my basic judgment here is GDXJ will be going up in the next 3 years. So, even for short term, trading JNUG should a better approach. Since generally, the overall trend is up, even though we made mistakes and missed a couple of time to sell at high, we will be able to make it later. However, if you are trading JDST, when you missed the selling point, you may never see that again.

So far, I am holding

GDXJ, averaged at $39.75 (I am not going to sell soon for longer term ivestment)
NUGT, averaged at $46.9, will sell this one when reaches $52.5
Looking for good entry at JUNG. Sold my JNUG at closing of business at $26.89 (average entry price about $24.5)

I don't know if the price will be up or down tomorrow. Market will tell and show and we just need to follow the trend.