Trader with 10 years of experience focused on U.S. equities. My goal is to help people discover new investment opportunities (both long and short) using a fundamentals-based approach.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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FAQs
TQQQ holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend. '". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.
Is ProShares UltraPro QQQ a good investment? ›
The fund aims to provide 3x the daily performance of the NASDAQ 100, primarily focused on tech stocks with larger weightings in the 'Magnificent 7'. However, some experts are cautious due to extended valuations in the broader tech index. Overall, investors are advised to be very cautious when considering this strategy.
Why is TQQQ falling? ›
ProShares UltraPro QQQ (NASDAQ:TQQQ) shares are trading lower by 5.1% to $56.50 Tuesday morning. The leveraged ETF is falling after inflation for January 2024 dipped slightly but missed economists' forecasts.
Can 3x leveraged ETF go to zero? ›
Leveraged ETF prices tend to decay over time, and triple leverage will tend to decay at a faster rate than 2x leverage. As a result, they can tend toward zero.
Is it OK to hold TQQQ? ›
QQQ is perhaps best-suited as a long-term investment for those who want broad exposure to the Nasdaq-100 Index. TQQQ is built for short-holding periods and is best suited for day traders.
Does TQQQ pay out dividends? ›
TQQQ Dividend Information
TQQQ has a dividend yield of 0.92% and paid $0.70 per share in the past year. The dividend is paid every six months and the last ex-dividend date was Mar 20, 2024.
Can TQQQ fail? ›
TQQQ's triple leverage can significantly magnify losses. As a result, it is a highly volatile investment and is generally considered unsuitable for long-term investing.
Is QQQ a buy or sell? ›
Mostly positive signals in the chart today. The QQQ ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average.
What is the disadvantage of TQQQ? ›
One important thing to note is that in those years when Nasdaq 100 generated negative returns, TQQQ had higher negative returns compared to QQQ. This is due to the volatility of derivatives; while they generate higher positive returns, they also generate higher negative returns.
Can ETFs go to zero? ›
Yes, an inverse ETF can reach zero, particularly over long periods. Market volatility, compounding effects, and fund management concerns can exacerbate losses. To successfully manage possible risks, investors should be aware of the short-term nature of these securities and carefully monitor their holdings.
A triple-leveraged ETF tracking the same index would fall by 60% on the first day (now $40), rise by 60% on the second day (now $64), and drop by 75% on the third day (now $16). This translates to a three-day loss of 84%, which is exactly three times the loss of the index.
Can you lose money on leveraged ETFs? ›
In a volatile market, where the underlying asset experiences large daily swings, the compounding effect of daily returns can cause the leveraged ETF to lose value rapidly. This is because losses are magnified over time, and gains are not enough to offset the losses.
Should I buy TQQQ or QQQ? ›
TQQQ - Volatility Comparison. The current volatility for Invesco QQQ (QQQ) is 3.11%, while ProShares UltraPro QQQ (TQQQ) has a volatility of 9.18%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than TQQQ based on this measure.
What is the price target for TQQQ? ›
The average price target for QQQ is $520.62. This is based on 102 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $621.89 ,the lowest forecast is $413.33. The average price target represents N/A Increase from the current price of N/A.
What is the TQQQ trading strategy? ›
TQQQ aims to deliver triple the daily performance of the Nasdaq-100 Index, making it an attractive choice for trend-catching. The strategy involves closely monitoring the price action of TQQQ and entering or exiting positions based on the direction of the trend.
