When to Trade 3x ETFs

3x ETFs can be a great way to either increase your profits or increase your losses in the stock market. Before you trade them make sure you are prepared.nnIf you trade them consider the following.nn1. Not for long termnnTipple leveraged ETFs are not for long term investing no matter which way you look at it. There has been some talk that leveraged ETFs favor the downside, and that would mean triple leveraged ETFs really favor the downside, going up in the long run may not necessarily apply here.nnIf you are a long term investor you don’t want to be touching things that make 10-20% moves either up or down every day either. nnInstead these ETFs should be considered for those who are going to make very short term trades 1-5 days or less. nn2. Are You making Money TradingnnIf you are already trading in the short term you have to consider your profits and losses. Before you trade these ETFs you want to already be winning. If you are not profitable as a short term trader these ETFs will only accelerated your losses. nnIf you are profitable they might be something to look into. But they shouldn’t be looked as something that is going to take you from an unprofitable trader to a multi millionaire. nn3. Position sizing is important.nnIf you are going to start trading 3x ETFs remember your position sizing and risk management rules. They still apply. Don’t trade too big of positions because they can turn against you. It can be very hard to handle if you let the losses grow too big.nn4. Slowly move into themnnDon’t just put all of your money into these ETFs, instead start slowly. Maybe enter a trade with a small percentage of your account, and if they work trade them more.nnFor more on 3x ETFs or other ETFs visit http://www.stocks-simplified.com/What_Are_ETFs.html