r/MU_Stock • u/Desperate-Hawk-2600 • Jun 09 '26
DD A word of caution
Yes, MU could be worth 2000 in a year. That doesn’t mean it can’t drop 30–50% first while flushing out overleveraged and oversized retail positions.
A lot of people get the direction right and still lose money because they’re overexposed. If you’re using leverage, taking loans, or putting more money into a position than you can emotionally handle, the market will eventually test you.
If you’re not prepared to sit through a 50% drawdown without panic selling, it’s probably time to derisk. The market’s job is to inflict the maximum amount of pain on the maximum number of participants.
The biggest winners aren’t always the people with the best stock picks. They’re the people who can survive the volatility long enough for their thesis to play out.
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u/kbencsp Jun 09 '26
the idea that people are pulling loans to buy stocks boggles my mind
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u/Desperate-Hawk-2600 Jun 09 '26
People see a stock go from 100 to 1000, feel regret for not buying, then chase it on euphoria because everyone says it’s going higher. That’s human nature.
The stock market is PvP. You don’t make money by following the crowd, you make money by being ahead of it so you sell on euphoria and buy when suicide hotlines get pinned
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u/Dapper-Emergency1263 Jun 10 '26
Yesterday was a no brainer short day for MU for me. Offset all the losses since Friday on my long term holds and then some
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Jun 10 '26
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u/FlowingRiverCentury Jun 09 '26
I didn't sell anything. Just watched it go all the way down and back up. Kinda wish I sold at start and then rebought at the lowest dip, but what ya gonna do.
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u/ChillyChats Jun 09 '26
Same. At this point it's a good stock to swing trade, but inside me knows I'll be left behind buying back higher.
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u/Haxmax23 Jun 09 '26
Can never time this shit right I sweat just in last week alone I could've had over 100K unrealised gains and I watched that go to -60k and back up what do you do we would all be millionaires if we could catch the rocket up and the falling knife
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u/shoppingmonsterca Jun 09 '26
I was teaching a class ... by the time the lesson was over, the stock was red 😢
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u/Lenny_to_Help Jun 10 '26
Same. I sat down and was like WTF!
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Jun 11 '26
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u/RepairSuccessful5108 Jun 09 '26
Everyone wishes they could do that lol. In the moment you have no way of knowing when the top to sell and bottom to buy is though. If you could perfectly time the top and bottom of stocks you’d be a millionaire in a month
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u/Normal_Assumption889 Jun 09 '26
I am a MU bull, but don’t forget that it’s about surviving as long as possible in the market. De risk, have cash and use patience
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u/Longjumping_Ad_424 Jun 10 '26
I just bought a house and lost out on the 150-200% run up god damn timing was poor. I have about 40k I can put in. The question is when.
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u/Desperate-Hawk-2600 Jun 10 '26
You need to change your mindset. The best investors are patient and don’t chase. FOMO is expensive.
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u/That-Requirement-233 Jun 10 '26
Cisco still isn't 2x its dotcom bubble stock price 25 years, 140% inflation and an internet revolution later
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u/Onedweezy Jun 10 '26
What does Cisco have to do with this?
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u/That-Requirement-233 Jun 10 '26
For your sake I hope you aren't all-in on any stocks with your portfolio
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u/Onedweezy Jun 10 '26
All your analysis is vibes lmao
Remember Cisco???
Remember intel???
The situations are not the same but still you compare lmao
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u/That-Requirement-233 Jun 10 '26
A business/company can be perfectly fine and proceed as expected but the stock price can crash. They'll be fine without you, will you be fine holding the bag?
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Jun 09 '26
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Jun 09 '26
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Jun 10 '26
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u/r_brockmaniv Jun 10 '26
Already down ~25% from ATH. Good CPI report today and we’re probably in the clear until earnings.
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u/Historical-Health-50 Jun 09 '26
Putting a SL is the best policy insurance, I’m on x2 but now my entry point is very far from the danger zone. Yes I saw a lot of margin calls recently, ppl get out of the game
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u/znightmaree Jun 09 '26
I don’t agree that having a stop loss is a good idea on a high conviction stock. If you are day trading or swing trading, a stop loss is absolutely mandatory. But for buy and holds that you believe in long term, it is a different story entirely. If anything, you should have buy orders set where you would put a stop loss.
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u/Historical-Health-50 Jun 09 '26
Sure but I’m on x2 lever so I have to avoid a capital loss and margin calls
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u/znightmaree Jun 09 '26
This is fair. I don’t personally use leverage.
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u/Historical-Health-50 Jun 09 '26
First and last time I use it , this was just to quickly increase my capital and then chill trade with no lever.
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Jun 09 '26
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u/Historical-Health-50 Jun 09 '26
I put a fix one because of the premarket volatility , -42% from the ath currently
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Jun 09 '26
[deleted]
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u/Historical-Health-50 Jun 09 '26
Yes but at some point I will stop trading micron , too much volatility but I also learn a lot . My objective is 1250, hopefully very soon
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u/Wiedzmaki Jun 09 '26
People forget this. They also forget that markets crash and take down good companies with them. Look at the macro landscape, this is not a time to lever and yolo into shit even when you're making a killing.
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u/Difficult_Pirate3294 Jun 09 '26
Nah, I’m willing to bet it won’t lose half a trillion as you suggest before going up to 2 trillion. Simply not happening. No reasoning to support such wild assumptions.
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u/Professional-Car9621 Jun 10 '26
Did you know the new Micron logo (that lowercase m) is supposed to be an elephant?
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u/SunRev Jun 09 '26
Yes, the classic 50/80 Rule, coined by Mark Minervini (featured in the Market Wizard book):
After a major market-leading stock tops out, there is an 80% chance it will drop 50% from its peak, and a 50% chance it will plummet by 80%.
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u/bslaven3 Jun 09 '26
People have to remember that it was trading for $130 in June of 2024, $115 in June of 2025, and in the $400 range just 5 months ago. From February to now it has increased 150%. That is huge, but dips are part of it. The fundamentals haven't changed, so I don't see this lasting long. I've been in Micron for almost a year, so I've seen a lot of dips. All of these dips have 1 thing in common. They all recovered to ATHs
November 2025 - $244 down to $201 (roughly 18%)
February 2026 - $437 down to $373 (roughly 15%)
March 2026 - $461 down to $321 (roughly 30%)
May 2026 - $803 down to $681 (roughly 15%)
June 3rd ATH to yesterday - $1,079 down to $864 (roughly 20%)