Ameliorate
Member
So.... I got margin called one of my positions, and lost some actual real cash (a REAL loss ). This bums me out...because I'm pretty sure that it will all turn around pretty rapidly, once the model Y is in the news, and we get Q1 production/delivery.
The trouble is, I made a rule with myself to have a limit as to how much cash I'd put in my trading account, and i'm right at it now. I do NOT want to be one of those dorks who loses his lifes savings because he didnt know when to stop
I'm mostly playing with previous TSLA winnings anyway, so the actual loss is still zero.
If it carries on down tomorrow, I could be margin called even more, but I just cant imagine it continuing to fall without some deep pocketed long term investors deciding to scoop up stock at a bargain. Is that just wishful thinking?
I feel some here need to consider the option that TSLA does continue down if the market does so. If leveraged like we are, precautions may need to be taken. To be clear, there is Nothing wrong with Tesla! They'll sell all their cars, production seems to be unconstrained and operating very well, great timing on Model Y to keep demand sky high, great timing on cap raise to keep everything running. WE know this, and sometimes this is my greatest downfall. Expecting the market to know what we know here. They wont have a clue until Q1 numbers come out how unaffected Tesla has been. When they figure out half of what we know here it will coincide with a sharp rebound. That or the markets rebounds and TSLA should be one of the most sought after picks for sure. People literally think a 200 kWh battery from GM is competition for TSLA *facepalm*
I finally feel safe after hedging 25% of my account last week on various puts on the SPX, banks, ford, VIX calls etc. Instead of losing 30% of my account value today I gained 25% while still holding 75% TSLA leaps. Hedge gains being converted to TSLA positions as they grow.
Yeah it sucked to sell some of my position in TSLA, but it's nearly what it was again while keeping the hedge which is now larger.
I can't say if the DOW will go to 18,000 or 32,000 in the next months, but after today's success and slight re balancing, at worst I should end up neutral from here(slight macro/tsla gains over next months) medium would be sharp rebound from here I lose my current hedge but keep all call gains. At best the hedge pays off huge and I really get to accumulate which helps immensely in the long run. Hedge was mostly based on how the US is handling NCOV, worth following the coronavirus thread.
Not advice, just something to consider. Mostly the part where we have greater TSLA insight than the market and how difficult that can be at times to use to your advantage.
Aside from hedging, it seems wise to lessen leverage when things are high and use more leverage when things are undervalued as to avoid situations like this. I can't say if this is the bottom or not so going off margin now and missing a huge rise would be tragic, but I hit my pain tolerance and had to do something, which as of a few days ago was better late than never. Going off margin and re-entering when things start to clear up is an option, remains to be seen if it's a good option at this point. That's a call you have to make, I wish you the best and don't want to see our investors get burnt. (Leveraged investing is very different from you lifers who never sell, please don't all jump on this post ) If not willing to make these kinds of judgement calls, non levered would be recommended though. HODL!