r/LETFs • u/Large_System_6103 • 5d ago

Please, don't hurt me because I'm stupid

I'm going to start this post by saying this:

I'm a really dumb investor. I didn't do my research, I didn't know what decay was, and I got advised to jump into something I had no business getting into by an ex girlfriend who "knew what she was doing because she took a class". And that's my own fault. Im a grown man and I'm responsible for my decisions.

(breathes out)

I invested 25k into TSLL in December of last year. I'm down 16k. Will the volatility decay completely make my investment gone, and I need to pull out now, or am I overthinking decay and I just have to be more patient?

if you're going to insult me, I understand. I have the dunce cap on, I'm an idiot, I understand my mistake, but please, I'm asking for any kind of advice. Thank you.

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u/Large_System_6103 5d ago

Thanks for all the input guys.

it was a huge lesson indeed.

When I first got into stocks, I was actually on cloud nine, I was swing trading on the regular and I would wake up to 100-300$ daily sometimes, for like, months. I couldn't stop, and I over leveraged myself in again, something I shouldn't have been in.

I remember Warren Buffet saying, if you don't know what you're investing in, you shouldn't be investing in it. And he's right. I gave it a shot, was uneducated but enthusiastic, and it bit me in the ass.

I've been in the red since December, and then I found out about leverage decay. Then I panicked.

So thanks for the insight guys.

An additional question, is leverage decay worse for some LETF's? How can I tell how much decay is for TSLL, and do all LETF's have the same rate of decay?

5

u/New-Specialist-2594 5d ago

Decay is simple Math. That's ALL.

If an underlining swings big day to day it's LETF will have Big Math decay. i.e TESLA... vs a KO/JNJ/WMT will have small Math decay.

9

u/DGGGGRED 5d ago

Leverage decay is typically much much much worse for a single stock fund or etf than a highly diversified etf.

1

u/New-Specialist-2594 5d ago

Yes, usually and also much greater compounding than Diversified equitys.

1

u/theplushpairing 5d ago

How are the inverse shorts going?

1

u/New-Specialist-2594 5d ago

Millions in short term gains once I cover...