Adrian Reid explains why traders shouldn't mix leveraged ETFs from different providers on the same assets. Pick one provider like Direxion and one leverage level, say 3x, so you don't accidentally double up on the same exposure in your portfolio.
my preferred method for eliminating all the duplication of underlyings is to just choose one provider with one leverage level because Direxion doesn't have multiple 3x leveraged ETFs that trade the QQQ. They have one. Makes sense. So if we choose one provider, we eliminate all the duplication. Now we constrict our universe of underlyings a little bit, because Direxin doesn't cover everything, but you could then go and add another provider for some of the extra things. If you wanted some of the agricultural or some of the commodities or something, you could then maybe go and do that manually. But this is a quick, easy way of getting a universe which doesn't have any hindsight bias in the selection. If you want more trading tips from Enlightened Stock Trading, make sure you give this video a like and follow Enlightened Stock Trading so you don't miss the next video. And go to enlightenedstocktrading.com/free to get your free Trader Acceleration Bundle to start improving your trading results today.
