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Comment by rafale | Hacker News Reader

If you are bored with the safe and unsexy options in this thread, and u have a great appetite for risk: Wait until TQQQ (3x QQQ ETF) goes under 10$ and then start a DCA over 12 months. You can easily 50-100x ur investment in 10-20 years. Alternatively look up HFEA strategy. Think big!

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Or you could lose nearly everything if it goes sour, I think it’s important to point that out.

That’s basically equivalent to betting on options (but wrapped up in a way that looks simple). Always remember XIV.

3x leveraged ETFs could indeed get wiped out if the market crashes, but XIV and TQQQ will behave differently, since the former holds actual underlying stock of the Nasdaq 100 Index components plus some derivative sauce for triple the leverage, whereas the latter literally only held short positions in VIX futures. And we all know that short positions have unlimited loss potential ;-)

I'd say DCAing into TQQQ is not equivalent to "betting on options" in terms of risk. Obviously "options" is a general term and you can in fact construct options positions to be more or less the same as holding the underlying stock, but when you say "betting" I think it implies a high chance of unrecoverable loss that typically comes from expiring options.

This is the way, even with 1-5% of what you have. Especially for the current state of the market. Be shrewd with your entry as the above posts suggests with its under $10 remark, and you’re almost assuredly gonna profit enormously in the medium-long term without ever losing a night of sleep from it.

I’ve been planning on doing exactly this with TQQQ and SOXL myself once they drop another ~40-50%. Though it should be noted I only have a small amount of capital to use compared to the OP (around 1% of the OP).

In the next 10-20 years, AI is gonna eat the world, just like software did, but 10x of that. We are still in the mainframe era of computing when it comes to AI. Large scale neural network take teams of experts to design and build, and supercomputers to train. All of that is coming to our computers and smartphones in the next decade or two, and it's gonna imprint everything we do and how we live our lives. ChatGPT and stable diffusion are just a glimpse in the future.

With this thesis in mind, it's clear that (T)QQQ and semiconductor companies are gonna be huge winners in this new augmented intelligence era. One just needs the conviction to hold thru the emotional rollercoaster that leveraged ETFs are.

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