Triple leveraged drawdown selling rule

[ken-do-nim]

(04-02-2021, 10:28 PM)fenders53 Wrote:

(04-02-2021, 08:39 AM)ken-do-nim Wrote: Given that my ROTH IRA (~72k) is 100% triple leveraged, I am seriously considering a policy that when I go on a real vacation (post-covid!!), I put it all into cash for the week or so that I'm away.  That way I don't have to worry about checking the market in case there's a sudden massive drawdown while I'm relaxing on the beach.

That will work until the leveraged port runs 10% while you are out.  Then what upon your return, buy high and chase?  You aren't risk averse so as an alternative maybe find a non-leveraged growth fund you like and park some cash there.  If the market pops you'll make a gain, and if it doesn't you don't have to worry about coming home 25% down.  The leveraged funds will be down harder  in that case and you can make a decision.  If the market crashed that hard you'd hear about it anyway.  Going completely in and out of cash rarely works out for me.       

I have to simplify my port for the summer this month.  I don't need options expiring every Friday when I have things that need done around the house.

That makes tons of sense!  Drop down to SOXX, QQQ and/or VOO for the vacation.  Thanks