Join us for today’s live Q&A in the Chat Room at 2:00 pm EST. If you can’t attend live, email your questions to firstname.lastname@example.org and I’ll get them answered. Here’s a sampling of what we’re discussing in there so far this morning:
Quote of the day from the Trading With Cody Chat Room: “My wife still wears the Trading With Cody 1-Year Anniversary tee. And yes I am one of your followers that bought FB at 19/share and made a small fortune lol! Still brag about that today. Thanks, you rock!!!”
A. That’s awesome, congrats on $FB and thanks for telling us!
Q. When I look at $AAPL‘s share price, I sometimes have to take it back to pre-split values to regain perspective. Presplit, $AAPL is now at above $950/share. I think that’s pretty damned good. Remember when everybody in the world except for Cody was saying there is no way $AAPL could hit $1,000/share? Pffft.
A. The inverse ETFs have slippage and other costs associated with them that over time make them perform much worse than actual long ETF. For example, over the last two years, IWM is up 13% which should mean that the TWM should be down 13%, but instead the TWM is actually down 41% in the last two years. Over the last six months, IWM is up 12% while TWM is down 24%. I mostly stay away from inverse and leveraged ETFs.