A strategy that I use often to earn a bigger profit

Hi

It has been awhile that I updated my blog.

Today I want to share some trading strategies that I use often when the Economy is uncertain.
There are many ETFs in the stock market and we should make good use of them. Some ETFs have no leverage and some has leverage. For example, if we want to long the real estate market, we can choose to buy IYR (no leverage) or URE (2x more volatile than IYR) or DRN (3x more volatile than IYR). This means that if the real estate index moves up by 1 point, IYR moves up by 1 point, URE moves up by 2 points and DRN moves up by 3 points and vice versa.

This is how it works. First when you are believe real estate in the US is going to rise in the long term but you are uncertain and worry that the economy might be bearish in the short term. You can first buy IYR. If the market really is bearish and IYR drops, you can change your IYR to URE. However, it the market continues to be bearish, you can change your holding of URE to DRN. Doing this can help you recover your lost a lot faster and hedge some of the market risk.

Hope this helps

MC