26 Comments
 

Apologies - didn’t mean to come across as brash. If I upset you or anyone it was never my intention.

I was more drawing attention to the fact that going all in on TQQQ is not the most responsible investment strategy, and comes with a lot of risk. As such, going around preaching we should only invest any excess capital we have in it didn’t sit well with me.

 

Understood no worries. But why do you think people did that man? Going all in like that. It's out of desperation to be freed from this stuff. Anyone happy with where they were in life would feel no pressure to be so aggressive. Many felt they didn't have much to lose. It's sad, but I'm certain things will turn around very soon for those that did not sell.

 

Why do people bet on crypto? Why do they buy Tesla? Some guy comes along (admittedly very convincingly) touting its possible future gains, based on his past gains. They think 'fuck it, if he can do it and sounds so sure, so can I'. It's just herd mentality. 

To be honest, I do think a lot of people do it just for fun (i.e. don't dump 100% of portfolio into TQQQ) and are willing to take the risk given the potential upside. 

Yeah, it's sad, but at the end of the day who cares? It's your life and you cannot control the actions of others. No one is obliged to make any investment, and we all have the ability to think freely. If some want to YOLO their savings and risk losing it, more power to them I say. Just don't come crying if it all comes crashing down. 

 
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I think you’re giving people too much credit.

They mostly did it because they think they are smarter than they actually are and fail to appreciate that they’re playing around with things they don’t understand.

Hopefully they were just doing it with petty cash that if/when lost it doesn’t hurt.

I suspect that’s mostly not the case. Most tourists in the market don’t understand that there’s no free lunch. If they’re making exorbitant returns, they’re likely taking on exorbitant risk. There was a thread at some point last year about writing TQQQ puts to make a +50% annualized return. Was pretty clear to anyone half-sophisticated that that’s a phenomenally risky trade and not an appropriate return unless you are doing it in very low size and as part of some broader strategy you’re trying to express in your portfolio.

If you’re playing the game in a not very thoughtful way, you’re taking outsized risk and your unforced errors will come due in arrears.

 

I think the idea of investing into a levered asset is a good idea, however it was not so much of a good idea for many to buy at the peak when the market had already rallied so much (i know, easy to say in hindsight). The best way to buy TQQQ is to either get the timing right or dca.

 

How do you all get away with writing such completely false crap? Goes to "nil"? Have you ran the backtests? Gone and poured through the hundreds of forum posts on BOGGLEHEADS (of all damn places!) with simulated backtest even with HIGHER leverage costs? There's a reason why you all are bankers holy shit man the misinformation is astounding.

 

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