Frequently Asked Questions

Dr K Market Direction Model
I am new at this and was curious what 1x, 2x, and 3x ETF code means? Do you also recommend buying all the ETFs or merely picking one from each group?

1-times ETFs perform at 1:1 their respective underlying index. Thus for example, QQQ more or less correlates with NASDAQ-100.
2-times QLD correlates with 2x the NASDAQ-100.
3-times TQQQ correlates with 3x the NASDAQ-100.

 

Same for inverse ETFs:
1-times PSQ correlates with NASDAQ-100.
2-times QID correlates with 2x the NASDAQ-100.
3-times SQQQ correlates with 3x the NASDAQ-100.

 

It is up to each member to decide how much risk they wish to take. This depends on each member's own personal risk tolerance levels.


Published: Jan 27 2012, Modified: Mar 13 2012