Tuesday, July 7, 2009

Making Money with Inverse Funds

ETF inverse funds have some great opportunity right now. A number of ETFs are now offering high risk "inverse" funds that can play bull or bear moves in the general market by investing in 2X or 3X bull or bear moves.
This is a form of hedge fund trading, and can be utilized for long term investing, as a hedge (ex: hold a bear fund while investing to the upside), OR for a good swing trader can offer some tremendous opportunity for 5% to 10% returns, when traded like a swing trade.

Let's use two of my favorite trades. BGU and BGZ. Dirextion DailyLarge Cap Bear and Bull 3X funds, medium volume, priced well in the $30.00 range (leaving out the baby boy traders), and quite easy to play to 5 and 10% returns quickly.

These work very well as high risk, high profit options also