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Interesting recent article on triple-leveraged ETFs, such as sqqq:
Basic premise is that over long periods you may make the right call and still lose.
Example Nasdaq declined 1.6% from beginning of year through May. What did the triple-short sqqq do over that period ? It declined 5.3%.
http://www.wallstreetdaily.com/2016/05/30/triple-leveraged-etf-3x-bull-bear/