Thursday, April 23, 2020

SPXS trade 04/23/2020

This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start.

            $381.94 self-imposed April trading limit.
            2% of $381.94 = $7.64 April profit needed.

     Yesterday (04/22/2020) I purchased 5 SPXS @ $11.55 and today (04/23/2020) I sold those 5 SPXS shares @ $11.75.

     $58.75...……..sold 5 SPXS @ $11.75
     $57.75...….bought 5 SPXS @ $11.55
     $  1.00 total profit

     $1.00 / $57.75 = 1.73% ROI

     Well 1.73% is smaller than I would like but happy to show a profit. SPXS is a leveraged EFT that "shorts" the S&P 500 index.

     That is an "inverse EFT", simply put, if the S&P 500 index goes down SPXS goes up. "Shorting" the market or a stock is inherently dangerous because over time history has shown the market goes higher.

     SPXS vs. SPXL, the first three letters are the same SPX = S&P  500 index, X = leveraged (these are leveraged 3 time), the last letter "S" = "short" and "L" = "long". 

     When you "short", you make money when the index or stock goes "down" (the opposite of "buy low - sell high". 

     "Long" (the normal way the stock market works), you make money when the index or stock goes up.

     All that being said, I bought SPXS because I thought the market was higher yesterday than it should be and would go down today. I feel the market is headed higher over time but NOT straight up. 

Disclaimer, I am not a professional
your comments are welcome and appreciated or





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