See the bottom of the page for a free share of stock
As the Dow Jones has sunken down 8% these last 5 days, I have been playing the short side of the market, but not in the way you would think. Rather than shorting the Dow Jones, I've been using a leveraged inverse ETF of the Semiconductors Market.
A snapshot of the DOW
Semiconductors Sector ETF: SOX
Sox since 2009
The SOX is an ETF that tracks semiconductor companies.
So what do semiconductor companies make exactly?
Essentially, a semiconductor is a type of technology that is found in cellphones, computers, and medical equipment. the semiconductor acts both as a conductor of electricity and an insulator.
You can read more information about semiconductors on Wikipedia.
The short story is that semiconductors as a whole in the SOX ETF are up 600% since 2009. Keep in mind that if you got in at the bottom, you 6x'ed your money. But it gets better.
The Leveraged Semiconductor ETF: SOXL
SOXL since late 2010
There is another ETF out there that tracks the same market as SOX, but with 3x leverage. This means that when SOX goes up 1%, SOXL goes up 3%. So if you got in with this ETF in 2009, you are up 18x. At it's highest point this year, SOXL was up over 1,700% only since late 2010. That means a mere $100 investment back in 2010 is now worth over $1,700. I bet you're wish the $100 dollars you spent on those Jordans were put to better use.
The Inverse Leveraged Semiconductor ETF: SOXS
This ETF works the opposite of SOXL. When the semiconductor ETF SOX goes down 1%, this bad boy goes up 3%. This is the tool I was using to short the market these past few days, and it rewarded me handsomely well. Since SOXL is up nearly 2000%, it is fair to expect a decline of 1000% when the market turns bearish in these coming months.
The thing about bear markets is that they happen in a much shorter period of time than bull markets. So, if you play an ETF like SOXS right, you have the chance of making more money faster than 99% of people have made on the way up. Bears make money too.
How My Suspension Occurred:
Like most shortcomings in capitalism, my suspension occurred because of unnecessary government regulation.
You're not surprised?
SEC law states that any individual with less than $25,000 in their brokerage account can make no more than 3 day trades in a 5 day period. I made 4. I have been notified by the robinhood trading app that my account will be suspended until May 8th (90 days).
I'm frustrated, but I can't say I'm surprised. The US government has no desire to see the less financially endowed person make it. If we had the same advantages and privileges of those with more capital, well, there just wouldn't be as much of a "wealth gap" issue. But that's a rant for another article at a different time.
I guess now all I'm left with is cryptocurrency and precious metals. I'll try to make the best of it!
Attention! If you're interested in receiving a free share of stock, sign up for an account on Robinhood using my referral link:
http://share.robinhood.com/micahm18
This is a zero obligation sign up. All you need is your personal information such as your ssn, birthdate, and your name. Robinhood is an SEC and FINRA regulated company. It's monitored by the federal government and is 100% safe. But don't believe me, just look it up for yourself.
1 in 150 chance of getting a Facebook, Microsoft, or Apple Stock
1 in 90 chance of getting Ford, snapchat, or AMD stock
100% chance of getting a free stock
Robinhood
Taking from the rich, giving to the poor...
Until they suspend you for day trading that is...
Thanks for Reading!
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