Page 3 | Leveraged — Trading Ideas on TradingView

Bullish Leveraged Gold ETFs Get Hammered – A Pullback Warranted?Given the large gains seen over the last two days, there could be support in the cards for leveraged minor ETFs following profit taking. NUGT, Direxion Daily Gold Miners, is the 3x leverage of the Market Vectors Gold Miners ETF (GDX). Price action is heavily to the downside, reaching support at $9.11 – forming a triple-bottom on the two-hour chart. Price visited this level on December 16 and 24, and NUGT is currently treading water. A short-term pullback is probable given the steep oversold condition, with the RSI at 16. The – DMI has ticked lower, signaling that downside could take a breather. However, the ADX is still sloping upward which is indicative of strong trend continuation. Next, the underlying benchmark GDX is showing the same negative sentiment. The chart, in many ways, is similar to NUGT. If the gold miners ETF can rally to the targeted resistance level of $18.46, this would represent a 9.51 percent increase in NUGT, or a move to $9.98 and just shy of the $10.08 resistance level. If prices can extend to the second resistance target of $18.74, NUGT could potentially extend to $10.33. Conversely, there is the likelihood that the intraday trend could continue lower. In this case, if GDX were to trade lower to the first support level of $17.55 then NUGT could move lower to $8.37 and break the triple-bottom support. A larger move to $17.35 would reflect a 28.5 percent loss in NUGT, causing the bearish ETF to fall to $6.48. As always, intraday charts are vulnerable to significant volatility caused by headline risk and potential outlook is only suitable for the next few trading sessions. See full post here: bullion.directory

LEVERAGE: The Legitimate Usage Imagine you have a strategy and you found that the optimal risk you should take is 4%. In other words with this strategy you should put 4% of your capital at risk in every trade to grow your account the fastest. If you enter a trade with 100% of your capital, the SL % is the % you put at risk. NOT the whole position size. So by entering a trade with all of your money and setting a 4% SL you only put 4% of your money at risk at all times ! Now let's examine the following situation keeping our strategy in mind. Imagine a perfectly oscillating market (for demonstration only). We are at the point where the red line ends and we expect the price to go the dashed path with a very high certainty. Our optimal & desired risk is 4%. However in this trade that we want to enter rightnow we can set a stop loss tighter than 4% because we are very certain that it wont be hit. So we can use a 2% stop instead. If you now put 100% of your capital in this trade you only put 2% of our money at risk at all times. However we want to put 4% of our money at risk for the best returns possible taking optimal risk (4%). That's where leverage comes into play as a LEGITIMATE tool and not a gambling tool. You already have 100% of your money in this trade, you can't put in more (without leverage) although your risk management tells you to do so. You want to increase your risk from currently 2% to 4% = double it. This means you have to take a 2x leverage. Now you are 200% invested in the trade and if your stop loss of 2% (in price action) gets hit you will lose 2 x 2% = 4% which is the optimal risk we wanted. More in-depth information about optimal risk for fast growth: en.wikipedia.org www.youtube.com

Bitcoin on a nice reverse after dropping under 295 Looks like we found a new support around $334 - I've got a long open since 310 and aiming to hold this position until 365. we've got a strong reversal about to happen but unsure where it'll lead us and how far up it'll go. I re-approached my positioning last night when the price was at 319 and I was still confident in my positioned unit. if we see the value of bitcoin drop under 330 again we might be stuck betwee 299-330 as a support for the coming weekend. due diligence and you'll notice a change in your trades.