Need guidance

[Investor187]

Hey everyone I am considering of investing around $10k on the Direxion daily energy bull x3, Im new to trading and i do not understand much .

When buying this ETF and holding it for long term what is the downside of it? like where is the stop loss that would cause me to lose my investment and what else do i need to consider before purchasing? 

[dmedin]

20 hours ago, Investor187 said:

Hey everyone I am considering of investing around $10k on the Direxion daily energy bull x3, Im new to trading and i do not understand much .

When buying this ETF and holding it for long term what is the downside of it? like where is the stop loss that would cause me to lose my investment and what else do i need to consider before purchasing? 

So if you are new and don't understand much, how has this idea of buying $10,000 of a very specific security come to you - was it suggested by someone?  You ought to do your own research and not go off tips.  Peter Lynch's book 'How to beat Wall Street' is good.

Edited June 5, 2020 by dmedin

[Fletch]

I would tend to agree with dmedin. It's a large amount of money to drop on something you admit to know nothing about. I don't really trade in those leveraged ETFs, but I don't think most of them are intended to be held long term. Maybe try trading on a demo account before you risk large amounts of money. But hey, it's your money, and sometimes the best lessons come with cost. Good luck with whatever you decide.

[Investor187]

Yes i understand, thank you for your contribution. However how does it work? I cannot find much online, like is there a stop loss that triggers when the indexes returns go lower?  because I have seen this ETF go as low as $1 when the oil future contracts expired last month and everything went negative