Every once in a while I like to update my readers on the biggest "Sucker's Trade" on Wall Street.
How these types of ETFs are even allowed to exist is beyond me. Most people don't understand how the VIX is computed, much less a leveraged derivative of VIX. Yet people buy this stuff and it is beyond me as to why. Honestly, I don't get everything that drives the VIX either, and while I follow it closely, I am surely not going to put my capital down on its direction.
The creators of this ETF are the scum of the earth because in creating it, they know it is a losing proposition that no one can really succeed at, but they do so to skim a fee off the top. I've seen traders that I've come in contact with over the years buy this stuff thinking they were going to get super rich, only for it to take all the capital they had.
Don't do it, never trade this trash - pure and simple that is what (NASDAQ:TVIX) / (NYSE:UVXY) is... TRASH!
