Let’s say you are holding $100k TQQQ now, if tomorrow the market is down by say 3%, signifying a major market crash similar to the ones in 2008 and 2020 March, how fast can you sell off all the TQQQ shares before the crash continues the next day? Is it possible to minimise the loss to be just 3*3% = 9?%? How difficult is it to bail out on ETF/ leveraged ETF in general when the market comes crashing down? Thank you!
In: Other
Creative use of sell stop orders can be used to minimize losses if one anticipates the possibility of a sudden decrease in share price, although one assumes the risk the stock/ETF might rebound soon after the sell order executes. (Stop orders also can’t be placed/executed in after hours trading)
Latest Answers