In my last alert I said that I had sold all my leveraged ETFs to invest more in Nvidia. A subscriber messaged me to say he thought this was a mistake. I can see that it was a drastic step and I want to explain my thinking.
I remain super bullish of leveraged ETFs, including QQQ3, which for most UK investors is the only one available to buy. The chart above, on the brink of giving a double whammy buy signal using 6m candle sticks, is strong and pointing higher.
My problem was two fold. I had to hold my leveraged ETFs, which included TECL and SOXL, in a share account. If they rose, which they have been doing, strongly since I bought them, this produces excellent gains. TECL and SOXL had both more than doubled. But this does not create any margin to buy further shares whereas the same thing happening in a CFD or Spread Betting account means I can build my holdings rapidly.
Secondly, gains in a share account are taxable whereas in a spread betting account they are tax free. So I have moved all my funds to a spread betting account and because I am super bullish of Nvidia that is where I have invested the money.
IG does not allow beginner investors like me to hold leveraged ETFs anywhere but in a share account so there is no avoiding the tax man without doing something like what I have done.
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