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PowerShares DB US Dollar Bearish ETF Message Board

  • larry_tttt larry_tttt Jul 11, 2010 11:28 PM Flag

    please help, serious questions

    how about the cost of UDN?
    This cost includes decay, fees, ...etc.
    I really do not believe their documents.
    I lost lots of money in some ETFS, many ETF will lose more than 10% a year with up and down.
    Anybody follow the UDN and UUP carefully?

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    • According to some bearish advisors, UDN will take off ... pretty soon. When ? They won't say or as a matter of fact, they don't know either !

      There's a trick of the daytraders called "play both ends",i.e have both UUP and UDN positions in their portfolio. About 1 hour after WSt opens, sell the one which's up, hold the other; then 1/2 hr before the closing, buy back the stock they sold in the morning (at market price). Repeat that game the next day.

      Good thing: You reap some profit every day (bec's it's impossible for both stocks to be bearish on the same day; if both are bullish the same time, well, Wall Street is insane !). Bad thing: the daily gain/loss is quite insignificant unless one is crazy enough to invest beaucoup money on each position.

      Caution: The people who play that game 1)must have plenty of PC time everyday 2) don't mind collecting some daily pocket money.
      BUT, quit playing that ding-dong game if the market shows sign of getting into comatose.

      • 1 Reply to numberten_98
      • Hello Number10 _9,
        have you ever analyzed the trading you wrote about whereby a day trader sells whichever is up (UUP vs UDN) I tracked this for the month of Feb and thought it could actually keep your head above water and allow you to clear a profit after a month. However, what throws a wrench into the works is when your holding the loser ETF for the duration while the other goes up. The morning the trend reverses is when its time to pay the man.
        Are you sure the traders using this method holds both overnight,,,everynight?

        Thanks, dd

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