Liquidate entire portfolio until virus is over?

Thrugelmir

tel_ said:

Thrugelmir said:

Easy enough to phoenix a hairdressing business. Just requires a good business plan and a Government funded start up scheme. 

So yet another Government funded scheme to go on top of all the other schemes and debt we are going to have. Not to mention new hairdressers with not much experience unlike the ones who've gone bust, and very little/no business sense which is very possible.

I'm sure that the virus won't have selectively picked off all existing hairdressers. Compared to the sums that will be going elsewhere. Money specifically allocated for small business which is the backbone of the UK economy is going to be essential. The world is built on debt. Time for a new culture. 

EdGasketTheSecond

Short FTSE 5763

bowlhead99

EdGasketTheSecond said:

Short FTSE 5763

That's in addition to your other 3x daily short FTSE from 5720 that you've lost money on over the last month, right? 

EdGasketTheSecond

No that is a straight short using XUKS. The 3 X leveraged @5720 I made around 15% on but they are only good for short trades, not for holding due to value leakage in the ETF. Thanks.

bowlhead99

EdGasketTheSecond said:

No that is a straight short using XUKS. The 3 X leveraged @5720 I made around 15% on but they are only good for short trades, not for holding due to value leakage in the ETF. Thanks.

Ah, so you did a 3x leveraged short from late March's 5720 and swiftly got out at the next market bottom 5% lower, rather than have it go back up to 5720 and lose several percent on the leakage which I assumed you'd done. Good timing!

[apologies, I'm always sceptical when people post that they've taken a position, then within a month the trade gets into a losing position and they say oh no you're behind the times, I exited that one at the best possible time along the way...] 

EdGasketTheSecond

Well I opened at 1544 and closed at 1698 on 3UKS so it was just under 15% I think.

This latest one I am in for more of a long haul either exit at + or - 10% though I believe the odds favour a fall over a gain in the next couple of months. I don't like the leveraged ETFs for anything more than say two weeks because you can be right on the market but still lose on the ETF. e.g. a 3X long and 3X short ETF can both lose money over a year whichever way the market moves!

bowlhead99

EdGasketTheSecond said:

This latest one I am in for more of a long haul either exit at + or - 10% though I believe the odds favour a fall over a gain in the next couple of months. I don't like the leveraged ETFs for anything more than say two weeks because you can be right on the market but still lose on the ETF. e.g. a 3X long and 3X short ETF can both lose money over a year whichever way the market moves!

The 1x daily shorts (such as XUKS) can presumably also still lose money over a period when the market falls (e.g. the market loses 20% from 5000 to 4000 one day and gains 24.975% from 4000 to 4999 the next day, so the short ETF gets the inverse of those daily figures, but that's before two days worth of overnight borrowing costs, stock lending fees, and transaction costs, and other OCFs such as management and administration).  But granted, not as extreme as what you get from the supershort (2x) or ultrashort (3x) products.

EdGasketTheSecond

Yes it does lose value due to costs but nothing like the 3X products. Over one year I estimated it might lose around 5% due to costs which is acceptable as my timeframe is a couple of months. Of course if the FTSE happens to drop sharply, I might retain the short on for a > 10% gain but we'll see how it goes. If it FTSE goes up 10%, I'll close and limit/take the loss.

kinger101

............

EdGasketTheSecond

I wanted to post a pic of the Titanic but can't seem to make it work; only a link but here it is:

https://www.google.com/url?sa=i&url=https://www.pinterest.com/pin/84724036710031670/&psig=AOvVaw1D-dZXmNBt_TUy96IyrCy5&ust=1587724934131000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCPiL3Leu_ugCFQAAAAAdAAAAABAD