Unlike the bull in the joke above you obviously, want to make money from your investments. What happens when you are feeling overly optimistic or bullish about the marijuana sector and all of the fundamental and technical pieces are aligning together ever so perfectly. Well, we now have a new option for you, the leveraged HMJU fund. With this fund, you can expect approximately the value of the gains you see as the companies go up in value to double. Of course, the opposite will be true if you are wrong. Again, we know you are constantly improving your technical analysis, so the odds of you being correct are ever improving. Some of the benefits of being bullish via an ETF as opposed to actually taking out a loan to leverage your account on individual stocks include:
Reduced commission fees (unless only purchasing one individual stock) No borrowing costs to leverage your position.
Less individual stock risk as the ETF contains a bucket of companies and an unexpected company-specific event will not be as drastically felt as if you were leveraged on only one specific position. For example, imagine a company you are leveraged on announces a crop failure or are being sued.
When you leverage a stock using borrowed funds and the trade goes against you, you not only risk losing all of your money but the money that is borrowed and not yours, to begin with. With the ETF you can be leveraged but only ever lost the maximum of what you put in.
Here are some charts and observations pertaining to the shorter time frames as it pertains to gaps. Note one is bullish and one bearish. The intention here is to get your mind engaged and look beyond the gaps that are outlined here. We are well aware that some people really value gaps and others not so much. It is important that you comb through the charts and apply your knowledge and understanding of what you consider to be bullish or bearish for your designated time frame.
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