This post aims to give some useful background information on Nasdaq 3X ETF (TQQQ). Why? Because TQQQ is the main instrument of our Nasdaq Options Trading System.
TQQQ is currently at $28 on May 9th, 2023. Our Amxsys AI system has been suggesting long trades on TQQQ since the start of year 2023, and they have been very useful, and in line with the Nasdaq100 trend observed since Jan.
Nasdaq 3X ETF (TQQQ) is an exchange-traded fund that aims to provide three times the daily return of the Nasdaq 100 index. It is designed to provide investors with leveraged exposure to the technology-focused Nasdaq 100 index, which includes the 100 largest non-financial companies listed on the Nasdaq stock exchange.
TQQQ uses a complex financial instrument called futures contracts to achieve its investment objective. These futures contracts provide exposure to the Nasdaq 100 index with the goal of delivering triple the daily return of the index.
It’s important to note that TQQQ is a leveraged ETF, which means that it uses financial derivatives and debt to amplify the returns of the underlying index. This amplification can work both ways and can result in higher gains or losses compared to the underlying index.
As with any investment, it is important to conduct proper research and due diligence before investing in TQQQ or any other ETF, and to consider the risks and potential rewards associated with such investments. It is also important to note that leveraged ETFs are generally designed for short-term trading and may not be suitable for all investors.