To The Moon

Last week, I made a small trade in HIBS, buying shares at $16.20 and selling at $16.30. Although the profit was minimal, I still consider it a win. On Friday, HIBS closed at $17.22, which reflects some recent strength. Over the past year, the stock has fluctuated between a 52-week low of $15.18 and a high of $32.18, highlighting its volatility, which is a key characteristic of leveraged ETFs like HIBS.

Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS)

Holding a position in HIBS takes a certain amount of courage, given the nature of its structure. As a 3x leveraged inverse ETF, it seeks to deliver three times the inverse daily performance of the S&P 500 High Beta Index. While this can lead to amplified gains, it also means significant risk and daily volatility. There’s a prevailing mindset that, over the long term, U.S. companies will continue to grow, and stock prices tend to rise overall. Because of this, I chose to trade HIBS for short-term opportunities, knowing that the S&P 500 and similar indexes are generally biased toward upward trends in the long run.

I’ll admit that I may have taken profits too early, but I’m comfortable with that. To me, investing is a hobby I engage in during my free time. I don't stress over small profits or losses; instead, I focus on learning from every trade. Each decision, whether it results in a gain or a loss, provides valuable insights that contribute to my long-term development as an investor.

That said, I'm already considering my next move. I’m monitoring the market closely, particularly the S&P 500. If it reaches an all-time high or experiences a period of heightened volatility, I plan to re-enter HIBS. At that point, I would aim for a longer-term hold with the hope of capturing larger profits if the market corrects. Since leveraged ETFs like HIBS can magnify returns on the downside, a well-timed entry when the market peaks could provide the opportunity for substantial gains.

I also understand that this type of investment strategy isn’t for everyone. It requires discipline and a strong stomach for market fluctuations. Still, for me, it’s an enjoyable way to interact with the markets, refine my skills, and experiment with different strategies. While short-term trades can seem modest, I believe that honing my approach over time will pay off as I develop a more sophisticated understanding of risk and reward. Ultimately, profits, no matter how small, are always welcome—and each trade, big or small, contributes to my growing experience in this field.