TQQQ vs QQQ
I see a bunch of posts on here about buying TQQQ and was wondering if someone could explain something to me and if it was more advantageous versus QQQ. From my understanding, TQQQ is leveraged 3x foris reset every day? Can someone explain what that means?
Next, let's say both QQQ and TQQQ are $100, if QQQ goes down 33% over the course of a month then TQQQ goes down 99% right? so QQQ and TQQQ are now at $67 and $1 respectively. Now if QQQ increases 100%, its at $134 and TQQQ then increases 300% then it should be at like $4. Does "leverage resetting" every day make this not the case (not sure what it means)?
So what I understand is that if QQQ goes down any significant amount, its really difficult to make it back up and, long-term, is a bad hold because QQQ at some point WILL go down a significant amount if we're talking about holding for 20+ years? Sure if it only goes up then TQQQ is the right way but being realistic, QQQ will likely provide returns that is greater than TQQQ