Cathie Wood Sees 20% Returns After 'Unbelievable' 2020

Silver already abandoned. Reddit raiders are like locusts

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Now that market is closed. I searched and found post below dated Dec 20. Without TSLA, 100% return in 2020. Not bad at all.

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2021_02_02_indexes_vs_TQQQ_2020

Her team matched the TQQQ return without TSLA. TQQQ with 30% drop in between.

Coming to the point, The biggest challenge for any one is to identify any stock which can exceed the TQQQ return !

Otherwise, simply put $5 million on TQQQ, hold for long ! No need of paying hedge fund fees, no monitoring stocks whether it goes up or down !

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TQQQ is leveraged correct? So in flat market, will lose value, correct?

Safer to switch to TQQQ after big dip in market. Too bad I wasn’t paying attention to its existence last March!

TQQQ is leveraged 3x of QQQ. If QQQ is 1%, TQQQ will be 3% down. If QQQ is 2% up, TQQQ is 6% up. Everything settles end of the day.

Since market is going up and down, over an year, it is working as 2x easily.

Year 2020 is really good example:

Jan to Mar depth, QQQ went down 21.14%, but TQQQ went down 60.79%
Mar to Dec depth, QQQ went up 84.05%, but TQQQ went up 410.39%

Blind investment,
Jan to Dec depth, QQQ went up 45.14%, but TQQQ went up 100.13%

To me, unless a stock exceeds TQQQ performance there is no point in investing any stock, rather blindly buy and hold TQQQ !

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Yes but this performance is over a huge long bull market. What if market was flat for 5 years? Say QQQ is net 0% gain over 5 years, won’t TQQQ actually be negative returns?

I would live to be proven wrong, but I’ve read that elsewhere.

IQ > 130 :+1:

Market is in a multi-decade bull run since 2009. TQQQ started in 2010.

Just a short duration to illustrate a flat market. Market could go sideways for decades, up and down a price range. Just multiply year by 10 for the graph below.

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Nice example Kudos ! Never thought it would happen !!

No doubt, that risk is there, with indexes, stocks and every financial instruments including ARKG kind of funds.

Yes but even on this graph, you can find points where QQQ has reached back to 0, and TQQQ is at a loss (10% or so). If this continued for another few years, what would that look like?

I’m just trying to poke some holes to prepare if there was a black swan event or worst case very multi year recovery.

If one buys TQQQ right now, totally possible slim chance that it loses 90% of its value and stays there for a few years.

To me TQQQ is a great play to buy some on big dips, and if it really drops, put a lot of money in. Basically someone is doing the options management for you. Doing this correctly, I can see 25% of portfolio could turn total assets to 8 digits and guarantee retirement.

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I has been explaining to @jil for very long, he doesn’t seem to get it. I told him Cycle IV is very near. No point buying any indices. I have already done all the comparison long ago before he mentioned it. Just trade and wait for Cycle III to be completed. And then a crash, buy then. Don’t think he understand internalize the significance of Cycle IV which I said many times is a multi-year corrective wave. I posted the charts many many many times in the Indices & ETFs - #1680 by hanera

That is what I said. I kind of tired of explaining to him :wink: I guess I didn’t say this A statement (in bold),

Essentially drawing the conclusion that matters the most to him in PLAIN ENGLISH.

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I agree with you and Zeapelido analysis. Remember 3x vulnerability is by leverage.

I may be biased as I have confidence to spot peak at 95% and bottom at 5% to trade TQQQ.

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Your algo (not you) is good :stuck_out_tongue_winking_eye:

Hmm… Cathie manages to buy 1 day before NFLX, PYPL and BILL’s big earning… so lucky?

Somehow, she has been selling TWST which tumbles after earning.

She has been very very lucky. I think @Jil has been sharing his algo with her secretly.

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Tagged bold highlighted ! :innocent:

Whatever I heard that ARK Team uses it own algorithm to trade, but that does not mean everything. ARK team is an insider when they are 5% and above stake in company ownership, they may have access to daily operations/details.

TWST seems to be good with 21% drop, downgrade by JPM after exceeding expectations, and touching SMA50. This may further go down, but reached potential bottom.

At this rate, I have to roll up my sleeve and research how to do algorithms trading. How long to finish? You took 3 years, right?

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Welcome to the world of undisclosed secrets! :crazy_face:

why not buy one instead of creating one from scratch? (if buying is a possibility)

Plenty of junk software at market, you will pay money and lose money too !

Real ones, It costs multi-millions, beyond retail trader capacity! Even those are not perfect!!

Why someone, like me wants to sell algorithm, when I myself can make millions?

There is no incentive to sell the secret.

Second, if everyone uses same algorithm, then it fails !

As long as secrets are maintained, the algorithmic person wins over other market !!

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I use to have a rudimentary algorithm :slight_smile: Doesn’t work well at all. Give up. Now have to try again.