Daily Energy Bull 3x Shares | ERX | ETF | Direxion

Daily Energy Bull 3x Shares | ERX | ETF | Direxion

Here is a link to the Direxion Energy Bull 3x Shares ETF called ERX.  I don't know exactly how the 3x leverage works, but I do know that if the price of oil goes up or down, ERX will follow it to some degree. For example, oil was selling for around $98 per barrel at the end of December 2013, and ERX had a price of $89 and change.  Then, when trading resumed on the first trading day of 2014, January 2, oil dropped to $95 per barrel.  ERX traded down $3 and change also to $86.20.

My point here is that if you think you have a good idea about where the price of oil is headed, ERX will most likely follow it.  This means that ERX is a highly trade worthy stock, and the up/down cycles of oil and ERX will probably be repeated many times in 2014.  Therefore, money could be made each time ERX moves 4% or more if you buy a big enough position.  Assuming you only make 4% each cycle, and you get it right 15 times during the year, you have made 60% for your money.  This will be probably far more profitable than owning the S&P 500 in 2014 or overbought stocks.