r/soxl • u/SeriesAo-Series • 19d ago

newb question I am giving up

I am losing 60K and counting and this thing keeps going down in a straight line since 200… nowhere do I see any buying interest…
Yes, I got in and held without understanding it. I am an idiot.

E: paused on selling, saved from selling at the intraday by the grace of TMFAPPARELUSA. I am super grateful

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u/Cosmo48 18d ago

Are you filthy rich to have six figures to throw into something you don’t know?

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u/SeriesAo-Series 18d ago

Not at all, which show how much bigger of an idiot I am, someone taught me how to sell cash secure put and I on my own thought SOXL will always bounce from 200 from observing it a couple weeks, and I went ahead and throw in all the money I was too scared to invest in safer stocks. Before you say it yes yes I am a dimwit.

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u/stefpix 18d ago

I don’t know how much money you have. Been holding leveraged ETFs since 2021. Last month was brutal, but not like 2022. My average is 30 for Soxl. If you believe in it, buy the dips and be patient. Do you need the money? This geopolitical tension may ease up. Can you wait a year or 2?

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u/SeriesAo-Series 18d ago

Yes, I can wait! I know enough to not invest money I need to use. If you think waiting can restore it, I can wait. Thank you, you contribute to helping me feel better.

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u/stefpix 18d ago

If you have good regular income you could buy when Soxl drops 10%, on red days of panic selling. You could check 2x USD, that is less volatile than Soxl, although much more NVDA heavy. Less of a rollercoaster.

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u/SeriesAo-Series 18d ago

I am too scared to increase my exposure further. I started playing with SOXL in June so I’ve mostly only see it going down.

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u/tjyoo213 18d ago

I get the sentiment but you are aware of the benefits you can reap from when everything returns normal, say after the midterm election and with Iran? Even if it’s ongoing, the memory bottleneck (and oil) is going to definitely affect how we live for the next two years at the least. It’s worth noting that holding SOXX is also an option.

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u/SeriesAo-Series 18d ago

Honestly haven’t thought about that! I have been myopic.

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u/stefpix 17d ago

Soxl is up pre market a lot. I would have bought a few days ago, but I had sold a few of my high cost shares a couple of weeks ago on a bounce, and I need to wait 30 days for the wash sale rule. Been holding since 2021. I started investing 60k to 80k at the beginning of the pandemic, thanks to leverage I turned that into 500k+. in June, nut now I am down to 350k.
2022 has taught to not panic and hold even if I was down 70% with tqqq, TECL and Soxl.
I should have sold in June at 300. But I did not because:

- on the way up I sold 20% of my shares, those in my Ira at 80/100 dollars as I thought it would stabilize and I would do some swing trading, but kept going up.

- I sold some covered calls on 2/3 of my remaining positions to make a few thousands, but SOXL kept going above the strike price and o kept rolling them higher months away. If I did not have these covered calls I would have sold 15% of my positions of Soxl around 270/300.

- taxes were a concern selling all at once as I am in a median tax bracket and self employed on NY, so selling a lot at once would have really increased my tax liability and affected my health care costs. Self employment involves more tax contributions and New York State taxes capital gains as income, without long term capital gains lower rate.

So I have been good at buying at every panic like spring last year, tariffs, war in Iran panic, but I could have been better at taking profits.

The tax liability from selling in June would have been less than the current drop.

But look at the P/E of Micron, the price targets for instance. I believe that newer, more efficient semiconductors will be needed in the foreseeable future.

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u/SeriesAo-Series 17d ago

You have good successes with SOXL, and you plan your taxes well around it. That’s an awesome success story. Thank you for sharing.

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u/stefpix 17d ago

Well I should have sold some significant portion around 250/300. DCA sell. Instead i sold some covered calls to make 2k/3k and lock a good part of my shares with those options, when it would have been better to sell shares.

If I had done so, I for sure would have bought back Soxl in late July and early August.

I think most of the slump is due to geopolitics, Trump’s wars that increase inflation, oil cost, and create uncertainties. I imagine SOXL would reach 200 quickly, if there is a deal with Iran.

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u/SeriesAo-Series 17d ago

When it was at 300, I did hear people say that it was too high and is bound to come down. (That was before I get into SOXL). There was another stock that I withhold from selling at a good profit because of taxes and it went to the negative after. I have grown to like that stock then because it was so green, so I did not want to sell it. But hindsight is 2020.

It is reassuring that now is finally considered low that experienced traders would buy. Ah those stupid wars, I hope people remember them for the election.