A Guide to Trading Daily Leverage Certificates (DLC)

What is Daily Leveraged Certificates

- A leveraged product that offers investors 3, 5 or 7 times the daily performance of the underlying asset, whether it is a rising or falling market

- e.g if the underlying moves 1% from its closing price the previous day, the value of the 5x DLC will move by 5%

- designed to be traded over short periods of time, usually traded on an intra-day basis

- long and short DLC available to trade both rising and falling markets

- will never lose more than your initial investment


How to Trade DLC

Beating the Street by Peter Lynch

Book Summary on Beating the Street by Peter Lynch with John Rothchild 

This is a follow up reading from One Up Wall Street book summary where Lynch writes about how an ordinary person can also be 'One Up' the Wall Street professionals. 

This book is akin to a diary that Lynch has written about his years spent investing in the markets working with Fidelity. In this book, he shared with readers the hits and misses and shared how he analyses the companies. 

 

Herewith I have extracted the key points from this book.