I’m Up 57% on TQQQ…And It’s Useless

Nov. 18, 2024

I’ll never forget that conversation.

It was a few years ago and I was speaking live at a trading event in Las Vegas.

A couple of us were sitting around waiting for the event to start and a guy walked up to me. He was clearly upset.

I thought, “Oh, no. He’s lost all his money doing something silly on something risky.”

Nope.

He was up over 100% on one of his stock picks.

And he was deeply unhappy.

Why?

He had no idea what to do.

If he sold, it was fine to make money…but what then?

What was he supposed to do then?

If his stock kept going up, he would “lose” a bunch of money by not staying in. If his stock went down, he would lose all his gains.

Worse, he had no idea how he was going to pick his next stock. It’s hard to pick individual winning stocks. If he exited, that was the end of his profit–and he had no other stocks in the pipeline.

Further, by selling, he was dreading the prospect of watching his one-time profit gradually dwindle down to nothing as he spent money or lost on other trades.

By holding, the paper profits might all go away, and he’d have nothing in that scenario, too.

In summary, holding paper profits is kind of a no-win scenario.

Which is crazy.

Or so I thought at the time.

Right now, as of this writing, I’m up 57% in TQQQ.

Yes, that leveraged ETF is too risky for any human, and we’re told never to trade things like TQQQ long-term.

But I didn’t listen to either warning, and now I’m up 57%.

And now I also feel that guy’s pain.

Because the profit is useless.

• How do I pay my bills with paper profits?
• How do I take my paper profits and turn them into more income-producing shares?
• How much do I make if the Nasdaq crashes like everyone says it’s going to?

The answers are “I can’t”, “I can’t”, and zero (or worse).

Paper profits don’t help my everyday life. At all.

Of course, I could sell and get something out of it. I could use any sort of trend following exit system and lock in my gains.

But that just takes us right back to the start: what do I do next?

If I trade TQQQ with a trading system, that will be fine–but that means losing trades.

And, as you know, I obsessively have come to hate losing trades.

If I keep TQQQ and take the miniscule dividend as my prize, that’s a pretty pathetic prize.

So, is a winning trade useless?

Incredibly, the answer might be yes.

Unless that trade actually pays me money.

Money I can use to improve my everyday life.

If I were up 57% on an ETF that paid me anywhere from 10% to 100% a year, that’s a completely different story.

Yes, the 57% is still mostly useless but the income is worth a ton.

I want my life to change now. I want money in my pocket now.

And high-yield income products can do that for me. While paper profits do nothing.

Which is why I keep adding more and more money to the high-yield prong of my trading.

All that said, I plan on starting a High-Yield Dividend Income Program on Jan. 1st, 2025.

Before then, I’d like to set up a private email list with anyone interested in joining and paying a discounted rate. I’d like to have some back-and-forth with that private group (and give out some possible income portfolios) between now and the first of the year.

Let me know if you’re interested. I’ll close this private list opportunity out on Friday.

Otherwise, we’ll still discuss trading strategies and high-income thoughts in the Newsletter, as usual.

Talk to you soon.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.