There are a few Megacap STP Stocks (MFAANG) with 2-3x leverage. For instance
(The FAANG Gang Had a Day)
I have been swingtrading these stocks but without leverage, and my success rate is 100% sofar. I never sell it when they are in red. I will wait until they turn green even it will mean waiting for a few months. It is only that the opportunity cost is high. So, I will try to up the game by playing with leverage. Another advantage here is that it is priced in £.
IMHO swing trade these stocks is vey low risk as the long history has shown that if there is a dip they will “always” bounce back” sometimes very very quick as long as the cause of price drop is not fundamental issue in business. In many cases the issue is just about sentimental and more political rather than business such as activists try to disrupt the capitalism, monopolists etc. If the issues like this they will easily bounce back. Also, these stocks have been tested in the extreme environment and they will bounce back. Just have a look in the March crash, they are a few stocks than bounce back very quick.
Has anyone tested this strategy? Would anyone who have tried this strategy especially with leverage, share his/her experience?