Most traders think they already understand leverage ETFs. Buy the 3x when you are bullish, buy the inverse when you are bearish, and expect roughly triple the move. Simple. The problem is that the funds do not actually work that cleanly, and the gap between what you expect and what you get is where accounts quietly bleed out.
In this video I take apart the thing everyone calls “decay” and show you why that word is wrong. I prefer to call it slippage, because it runs both directions. Using GDX and its two triple-leveraged cousins, GDXU and GDXD, I pull up the real charts: a 30% drop in GDX that left GDXU down only about 70%, and an inverse fund that overshot all the way to 165%. Then I explain the machinery underneath, the daily 3x reset and the way volatility balloons the options these funds lean on, so you understand why the overshoot happens instead of just being surprised by it.
Your Profit Pilot,
TG Watkins
Taylor Horton just launched Compound Growth Alerts, and he broke the whole thing down in a live session. If you want trade alerts built around compounding a position instead of chasing one-off wins, watch the replay while it is up. It is the disciplined, plan-first approach I respect.
