Inverse ETF

Investing in an inverse ETF allows you to profit from a market decline. When the stock market falls, most investors lose money. But if the market direction is correctly predicted, investing in inverse ETFs can yield profits.

SQQQ is an inverse ETF with a daily target. For this SQQQ is designed to be traded intraday and is not intended to be a long-term investment where expenses and decay will quickly eat away at returns. Hence it is not suitable for long-term holding, this is meant for short term, high risk but high profit gains if the Nasdaq-100 falls.

Before purchasing SQQQ, the investor should be familiar with and comfortable with inverse leveraged ETFs. Also, in order to avoid decay, the investor must be able to trade quickly. The investor should also be at ease with volatility.