The correct way to use leveraged ETFs is for an intra-day trade (also known as a “day trade”) when you are strongly bullish. The reason we say strongly bullish is because if you’re wrong, your losses will be magnified due to the leverage this strategy affords you. So this is not a play for the faint of heart. Bear in mind, the more frequently you trade, the more transaction costs you will incur.
happy trading!
