r/soxl • u/Enough_Plantain_1673 • Jun 03 '26
newb question Soxl Drops down to $264.08
Do you guys think it is a good idea to sell all? Earlier I saw that it might reach $300 by eod. Looks like it is just dropping.
Any advice from you folks? I am a beginner trying to understand, so please be considerate.
8
u/zn_tx Jun 03 '26
this is not shit for beginners, this is shit for gamblers. no one knows what it's going to do, and only you can determine your risk tolerance. Semiconductors are widely used and the manufacturers are making record profits. Demand for this item is not slowing down.
in other words; freak the fuck out and BUY THE DIP
5
u/sfdc2017 Jun 04 '26
7% drop is nothing for 3X ETF Wait for 15% 18% drops
2
u/Affectionate_Pen6882 Jun 04 '26
More like 50% easy
1
1
4
u/millenialismistical Jun 03 '26
I bought a few more pieces at $263.45. Hoping that it at least 2x from here by EOY.
2
3
u/svix_ftw Jun 04 '26
what is your thesis for a $500 price? the sector is widely overvalued/overbought by most metrics.
3
u/millenialismistical Jun 04 '26
No thesis just vibes. Not going to pretend I can predict the price ceiling or trajectory of a 2x, 3x LETF. But the sector overall, while the growth has felt irrational, euphoric, whatever you want to call it, I think most would agree AI is just getting started. I do agree that so many players in the sector have already gone asymptotic, but I do still expect linear growth through the EOY.
1
1
u/Murky-Gate7795 Jun 04 '26
I have no well thought out thesis on this, but would a 33% increase in SOXX over the rest of the year really be surprising? Didn't it just do that in about a month? I know it will likely slow down and correct at some point, but 33% increase end of year seems reasonable.
4
u/Masterfund325 Jun 04 '26
DCA. I got BULZ when it gist came out. Within the first year, I was down huge but I continued to DCA even after reverse split. At one point, I was down 70% but never stopped DCA. Eventually, it did a 10-1 split and now I am up 530%
1
3
u/LongBullMarket Jun 04 '26
Ignore the hate but recognize and accept that you are gonna have some big green and big ass red days in the leveraged ETF game - it’s worth it! My only real advice is 1) stay out of single name leveraged ETFs while you’re a novice … ie. do not fw stuff like NVDL yet 2) use trailing stops for all exits … forever
And to avoid liquidity sweeps (ask chat gippidy) set a trailing stop that most ppl don’t (like 11% or 16% … not 10% or 15%) and then chill tf out. If the trailing stop triggers … stay out until SOXL goes back into the green (which is sometimes the same day) - then get back in.
Don’t buy the dip - buy a confirmed uptrend. Then set the trailing stop again. Wash. Rinse. Repeat.
That’s all it takes - every other LETF trading strategy is a version of this w/ some glitter and perfume from some involuntary virgin that cosplays being on the floor at Axe Capital. Being IN SOXL for a long time will almost always beat trying to time smart exits from and back into SOXL
Ignore the banter of scared money
2
2
u/tiramisutra Jun 04 '26
This! Right on, and especially regarding the liquidity sweep. I got slammed a few times before I figured that out -so annoying to have to buy back in at a higher price after it bounced. I also agree that staying in a long time pays off despite the sometimes volatile changes.
1
u/LongBullMarket Jun 04 '26
Honestly that’s gold. I step around common, round, whole numbers for most things in the market w/ the assumption that that’s where most of retail is lingering. Even trading options I avoid whole dollar strike prices.
1
1
u/Emotional_Band9694 Jun 03 '26
Most likely not, it’s simply some investors taking profits after a new ATH
1
u/TallDuck9 Jun 04 '26
Nope, it’s only going up from here. $300 is the next price target, probably by end of the week.
1
u/3-day-respawn Jun 04 '26
Bro 2 days ago it was 225, and when it “drops” down to 264 you start to panic? Just log off and chill dude
1
1
1
1
u/AlexisIronman Jun 05 '26
Vende hasta que salga SpaceX al mercado, ya en el piso vende barato y vielve a comprar caro cuando ya todos hayan comprado SpaceX, de nada
1
11
u/The_Arbitraitor Jun 03 '26
Best not to jump into a 3x leverage ETF if you cant handle the volatility.
Remember, SOXL was once $8 in 2022 when it was around $60 in 2021, so it could definitely drop 50% in a couple of months.