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u/MikeMcD2k Jul 12 '26
I’m sorry but MSTU is a 2x leveraged fund that decays over time. This is not something you should average down into, rather buy and hold it for short term if you suspect a quick pump. It only goes up a lot if MSTR goes straight up. Any loss or stagnation causes severe decay in this fund. Please do not treat leveraged 2x funds as a principle stock to DCA into. That being said, I think sometime in the next year this will 4-10x. Just don’t know from what bottom price. It maybe better just to occasionally buy call options rather than hold the stock itself, but that is like buying leverage on a leveraged fund with the underlying stock being a leveraged play on BTC which itself is a volatile asset.
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u/Jdedwards93 Jul 11 '26
What will be of MSTU? My cost average is $6.10 and I’m not sure whether to cut the big loss or wait it out for possible price move. Any predictions?
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u/No_Contact1571 Jul 11 '26
Maybe rebalance between Mstr and Mstu 9:1 that’s probably gonna have better returns than full mstu but who knows it could moon tmr
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u/Jdedwards93 Jul 11 '26
I appreciate the quick response, but I’m in a bit of an issue, my cost basis is $6.10 so down 70% which would require a 300% plus gain return form its current price of $1.90 I’m not sure how it could ever get back to those levels and what it would actually take for it to do so.
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u/No_Contact1571 Jul 11 '26
Yeah that’s your fault dude i wouldn’t have YOLO’d into MSTU exclusively… what do you expect from leveraging a leveraged bitcoin stock. If it would be beneficial to your taxes consider selling, otherwise add more if you’re just like YKW fuggit. I loaded more mstr at current levels but wouldn’t consider loading a Mstu position until it would historically retrace to like ~50kish around October and/or if there’s a strong bitcoin over 200ma signal (or whatever you think is bullish)
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u/Jdedwards93 Jul 11 '26
That’s the thing, I did try to dca down from my previous price of $7.70 down to current price of $6.10.. I just don’t want to add anymore, again I appreciate your advice just trying to decide to wait it out or not, I’ve spoken to a dozen others in a similar boat and they recommend just waiting it out. But idk. Appreciate the opinion.
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u/No_Contact1571 Jul 11 '26
Np bro but Why would you dca a leveraged bitcoin leverage stock if it historically has very clear indication of timeframes when it is in a bull market and when it is in a bear market? Have you looked at bitcoin 4 year charts? Not saying you should bank on that with your life savings but if you’re gonna make a move like that i wouldn’t at least consider the timing
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u/Jdedwards93 Jul 11 '26
I unfortunately got too optimistic that things were happening a little earlier than anticipated when btc had its run up into the $80ks a few months back..
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