Everything You Need to Know About Leveraged ETFs: High Risk, High Reward — Buyer Beware

Join me at 9:15 a.m. ET for “Morning Monster”!

August in the Rearview Mirror  First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter. Looking back at where the markets moved in August. What were the best-performing sectors and the worst? Then, where do we expect things to go as we head into this last month of Q3 2025? Come join me as we dive in and see what’s moving!  Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.    — — —  Everything You Need to Know About Leveraged ETFs: High Risk, High Reward — Buyer Beware When it comes to leveraged ETFs… buyer beware.  They can be a tempting option for traders looking to amplify their returns. These funds use derivatives and debt to multiply the performance of an underlying index, offering returns of 2X, 3X, or even higher.  But while the potential for outsized gains is real, so are the risks. Here’s what you need to know before diving into these powerful yet precarious instruments. What Are Leveraged ETFs? A leveraged ETF aims to deliver a multiple of the daily performance of a specific index or asset. For example, if the S&P 500 gains 1% in a day, a 3X leveraged ETF tracking the index would aim to gain 3%.  Similarly, if the index falls 1%, the ETF would lose 3%. These funds are available in both long and short variations, allowing traders to profit from market moves in either direction. They achieve their performance using a mix of futures contracts, swaps and other derivative instruments. This structure allows them to magnify daily returns, but it also comes with a key caveat — the gains (and losses) reset daily.  This means that over longer periods, the performance of a leveraged ETF may diverge significantly from the expected multiple of its benchmark. The Appeal: Why Traders Love Them   1. Amplified Returns: For short-term traders, leveraged ETFs can deliver massive gains on small price movements. This makes them ideal for taking advantage of intraday volatility or capitalizing on strong directional trends. 2., Accessibility: Leveraged ETFs trade like regular stocks, making them easy to buy and sell. They don’t require margin accounts or complex setups like trading futures or options might. 3. Cost Efficiency: With no need to manage derivatives directly, leveraged ETFs provide exposure to amplified returns without requiring deep technical expertise.   And now for the risks…   1. Compounding Effect: The daily reset feature means leveraged ETFs are best suited for short-term trades. Over time, market fluctuations can erode returns, even in a trending market. 2. High Volatility: Amplified returns mean amplified losses. A 3X leveraged ETF will lose three times as much as its underlying index or stock on a down day, which can wipe out gains quickly. 3. Tracking Errors: Leveraged ETFs may not perfectly replicate the intended multiple of their benchmark, especially over extended periods. 4. Costs: Higher management fees and expenses can eat into returns, especially for traders holding these funds longer than intended.   Leveraged ETFs are not for everyone, so who should use them?  They’re designed for experienced traders with a strong understanding of market trends and the discipline to monitor their positions closely. Long-term investors or those new to trading may find these instruments too unpredictable and risky for their goals. Leveraged ETFs can be a powerful tool when used correctly — offering high reward potential for those who understand their mechanics and risks. However, they require a sharp eye on the markets and a clear exit strategy to avoid getting caught on the wrong side of a trade.  Before using these funds, ensure you’re prepared for the volatility and have a plan to manage your exposure effectively — if you really want to start using them, paper trading first is the way to go. As always, the market does what it wants — but with leveraged ETFs, it often does it faster and with higher stakes.  Stay sharp, stay cautious, and know the tools in your arsenal. Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!   ‘Morning Monster’ Is Starting NOW! I’m also live at 5 p.m. ET on Tuesdays for “30 Minutes of Awesome” — bring your ticker and I’ll analyze it in real time! And be sure to hit that Subscribe button on my YouTube page! _____________________________________________________ Exploiting the Options Market with 0DTEs  With these zero-day options taking over the market, I’ve found a way to play them for a shot at multiple daily returns...   I’ve laid out my entire setup for you to see, learn and adopt.   Go Here Now to Get Started We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading past performance is not indicative of future results. From 7/10/24 - 7/8/25 the result was a 116% average winner on a 74% win rate on 2,865 trade signals with an average hold time of less than 24 hours on the underlying stock. _____________________________________________________ Today’s Daily Chart Setup: JM Smucker (SJM)     This idea came directly from my Daily Chart Setup that automatically signals potential plays.    • SJM is a new potential entry. Target: 116.84 Stop below: 99.25 • SJM has a historical win rate of 82.82% • SJM has a profit factor of 1.15 • SJM trades last 55 trading days on average over 33 trades since 1968.   See the secret behind these signals here!   This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Always remember that past performance is not indicative of future results. How the Daily Chart Setup Works Here’s a more detailed description of how the pattern triggers: 1. The price breaks upward through the orange Market Roadmap line.  2. Then the price goes up and down while staying above the line. Eventually, it comes down to touch the line again — this could take days, weeks or even months.  3. Once it touches the line and starts moving back up, that signals an entry.  I use Fibonacci levels for for profit targets and stop losses, and these two tools combined have helped me achieve a 77% win rate over the past six-plus years! You can grab my Market Roadmap Indicator here for just $5 — less than a cup of coffee at most places! Jeffry Turnmire Jeffry Turnmire Trading I host my “Morning Monster” livestream at 9:15 a.m. ET each weekday on YouTube, and then “30 Minutes of Awesome” at 5 p.m. ET each Tuesday! Please check out my channel and hit that Subscribe button! I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader. I've been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it's the Eagle Scout in me.  *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

August in the Rearview Mirror   First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.   Looking back at where the markets moved in August. What were the best-performing sectors and the worst? Then, where do we expect things to go as we head into this last month of Q3 2025?   Come join me as we dive in and see what’s moving!    Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.    — — —  Everything You Need to Know About Leveraged ETFs: High Risk, High Reward — Buyer Beware   When it comes to leveraged ETFs… buyer beware.    They can be a tempting option for traders looking to amplify their returns. These funds use derivatives and debt to multiply the performance of an underlying index, offering returns of 2X, 3X, or even higher.    But while the potential for outsized gains is real, so are the risks. Here’s what you need to know before diving into these powerful yet precarious instruments.   What Are Leveraged ETFs?   A leveraged ETF aims to deliver a multiple of the daily performance of a specific index or asset. For example, if the S&P 500 gains 1% in a day, a 3X leveraged ETF tracking the index would aim to gain 3%.    Similarly, if the index falls 1%, the ETF would lose 3%. These funds are available in both long and short variations, allowing traders to profit from market moves in either direction.   They achieve their performance using a mix of futures contracts, swaps and other derivative instruments. This structure allows them to magnify daily returns, but it also comes with a key caveat — the gains (and losses) reset daily.    This means that over longer periods, the performance of a leveraged ETF may diverge significantly from the expected multiple of its benchmark.   The Appeal: Why Traders Love Them   1. Amplified Returns: For short-term traders, leveraged ETFs can deliver massive gains on small price movements. This makes them ideal for taking advantage of intraday volatility or capitalizing on strong directional trends. 2., Accessibility: Leveraged ETFs trade like regular stocks, making them easy to buy and sell. They don’t require margin accounts or complex setups like trading futures or options might. 3. Cost Efficiency: With no need to manage derivatives directly, leveraged ETFs provide exposure to amplified returns without requiring deep technical expertise.   And now for the risks…   1. Compounding Effect: The daily reset feature means leveraged ETFs are best suited for short-term trades. Over time, market fluctuations can erode returns, even in a trending market. 2. High Volatility: Amplified returns mean amplified losses. A 3X leveraged ETF will lose three times as much as its underlying index or stock on a down day, which can wipe out gains quickly. 3. Tracking Errors: Leveraged ETFs may not perfectly replicate the intended multiple of their benchmark, especially over extended periods. 4. Costs: Higher management fees and expenses can eat into returns, especially for traders holding these funds longer than intended.   Leveraged ETFs are not for everyone, so who should use them?    They’re designed for experienced traders with a strong understanding of market trends and the discipline to monitor their positions closely. Long-term investors or those new to trading may find these instruments too unpredictable and risky for their goals.   Leveraged ETFs can be a powerful tool when used correctly — offering high reward potential for those who understand their mechanics and risks. However, they require a sharp eye on the markets and a clear exit strategy to avoid getting caught on the wrong side of a trade.    Before using these funds, ensure you’re prepared for the volatility and have a plan to manage your exposure effectively — if you really want to start using them, paper trading first is the way to go.   As always, the market does what it wants — but with leveraged ETFs, it often does it faster and with higher stakes.    Stay sharp, stay cautious, and know the tools in your arsenal.   Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!   ‘Morning Monster’ Is Starting NOW! I’m also live at 5 p.m. ET on Tuesdays for “30 Minutes of Awesome” — bring your ticker and I’ll analyze it in real time!   And be sure to hit that Subscribe button on my YouTube page! _____________________________________________________ Exploiting the Options Market with 0DTEs   With these zero-day options taking over the market, I’ve found a way to play them for a shot at multiple daily returns...   I’ve laid out my entire setup for you to see, learn and adopt.   Go Here Now to Get Started We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading past performance is not indicative of future results. From 7/10/24 - 7/8/25 the result was a 116% average winner on a 74% win rate on 2,865 trade signals with an average hold time of less than 24 hours on the underlying stock. _____________________________________________________ Today’s Daily Chart Setup: JM Smucker (SJM)     This idea came directly from my Daily Chart Setup that automatically signals potential plays.    SJM is a new potential entry. Target: 116.84 Stop below: 99.25 SJM has a historical win rate of 82.82% SJM has a profit factor of 1.15 SJM trades last 55 trading days on average over 33 trades since 1968.   See the secret behind these signals here!     This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Always remember that past performance is not indicative of future results.   How the Daily Chart Setup Works   Here’s a more detailed description of how the pattern triggers:   1. The price breaks upward through the orange Market Roadmap line.    2. Then the price goes up and down while staying above the line. Eventually, it comes down to touch the line again — this could take days, weeks or even months.    3. Once it touches the line and starts moving back up, that signals an entry.    I use Fibonacci levels for for profit targets and stop losses, and these two tools combined have helped me achieve a 77% win rate over the past six-plus years!   You can grab my Market Roadmap Indicator here for just $5 — less than a cup of coffee at most places! Jeffry Turnmire Jeffry Turnmire Trading   I host my “Morning Monster” livestream at 9:15 a.m. ET each weekday on YouTube, and then “30 Minutes of Awesome” at 5 p.m. ET each Tuesday!   Please check out my channel and hit that Subscribe button!   I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.   I've been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it's the Eagle Scout in me.    *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Jeffry Turnmire Trading provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Jeffry Turnmire Trading are for your informational purposes only. Neither Jeffry Turnmire Trading nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Jeffry Turnmire Trading is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to ignoble.experiment@arconati.us by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Jeffry Turnmire Trading provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Jeffry Turnmire Trading are for your informational purposes only. Neither Jeffry Turnmire Trading nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Jeffry Turnmire Trading is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to ignoble.experiment@arconati.us by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub