How Tactical Traders can Profit From Volatility

I think a lot of people when they think of ETFs, they think of sort of like many stocks in one or a basket of stocks.

Uh so the single stock is kind of a relatively new concept, is it not? >> Yeah.

And so these came live back in 2022 and really this past year in particular, you've seen just incredible growth.

Uh our one of our largest funds as a firm is actually our 2x Tesla fund, TSL.

And if you think about it, I've mentioned Tesla, Palanteer, Meta, these are all names that oftentimes see volatile trading periods.

And for tactical traders with conviction, buying a 2x fund or going short with a negative 1x fund is really just a great way to make profit on quick short directional trades.

Again, these are not buy and hold investment vehicles.

This leverage resets daily.

Uh the same we like here at direction is the trend is your friend.

So if you're long a 2x fund and the market is just one directional bull market, great, you can make a great profit.

But if markets get choppy, you see real volatility or the market runs against you, that compounding works against you as well.

So, we really do like to reiterate these are tools meant for tactical traders and for traders looking to learn more, go to our website, direction.com, go to our direction university and really just unpack some of the resources there to better understand how these fit your broader portfolio.