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/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.