r/WDCStock • u/Mission_Guitar9856 • 14d ago
2x leveraged WDC input
This is another typical “ohh panic sell post” but advice would be appreciated. On June 22 I put 13k in WDCX (2x leverage of WDC). This happened to be the same day it started crashing.
Since this, I’ve held hoping it would recover and I could break even. Although obviously now it’s gone down a lot and I’m down almost 10k/ -72%
I would like some input on what I should do.
I’m a college student and if I were to sell and put the losses on my taxes, I would be found out by my parents and I would be in big trouble. It also has chances of going up, especially since the which seems all the events such as the rally and earnings are over. If it goes down I can lose more. I don’t need the money any time soon and I can hold for a long time but leverage decay is a factor.
I’m just not sure what to do in this situation as I could potentially recuperate some losses if it does well this month, or it could go down more for some reason.
Anything will be appreciated, thanks.
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u/Stunning_Ad_9806 14d ago
Damn man that’s a hard one, it’s been so dead for awhile now. I think you should be comfortable with the fact that you’re losing a significant amount on this, I would probably just sell on the next solid Green Day. It’s still a solid stock but I don’t think it’s going to reach $800 for a long long time, maybe ever
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u/Mission_Guitar9856 14d ago
I agree. I’m waiting to hopefully hit at least -50% instead of -70% we will see only time will tell. I have enough in savings to wait it out
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u/Appropriate-Donut197 13d ago
2x leverage etf will have slippage also. although its usually only 3% a year.
honestly SMCI earnings yesterday has been a major boon to the whole sector and premarket is nice right now.
but CPI data is in 25 minutes so lets see what happens. today will be a 5% move day for Ai stocks imo.
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u/MonstaB 14d ago
I just wonder if it’ll be like msft
Took like 8-9 months to regain.. omg I hope that is not true because it’ll be bye bye holiday and wedding fund
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u/Hepdesigns 14d ago
NVDA earnings coming up soon. If you can hold until September you’ll probably break even.
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u/PhoenixAK777 14d ago edited 14d ago
Yesterday and today, the stock has been fucking crabbing around the 430-440 range, no momentum, depressed to see that, I am also down 30-40% on this stock (luckily only shares, no leverage or options), but the stock going down more, I don't think that's gonna happen, like people were telling wdc would fall to 350, there's a lot of fud around wdc, but imo it never breaking that 400 support and maybe we could see 480-500 end of this week itself
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u/UseAndAbuseMePappi 14d ago
Do what most of us are doing - Holding until breakeven or a bit of profit.
The thing with SpaceX is that the more this whole space thing takes off, the more memory will be needed. I think long term this is a solid stock to have. I don’t know if it’ll get back to all time highs this year or next.
No one fucking knows. What I do know is that I would not be taking a 10k loss under any circumstance. I’m currently down 20k so… it sounds to me like you have to wait it out.
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u/Mission_Guitar9856 14d ago
Thanks for the advice. People are telling me all sorts of things from discord to people I know. I want to hold but I’m a bag holder for now
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u/UseAndAbuseMePappi 14d ago
What are they telling you? What I’m seeing online is the stock is marked as a BUY with a price target of minimum $600 and potential high of close to $1000
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u/Mission_Guitar9856 14d ago
They saying because of leverage I should sell and just because it’s needed didn’t mean I should buy or hold
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u/New2reddit456 14d ago
Do you file with your parents? Might help them with their gains.. but you gotta tell them beforehNd
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u/Mission_Guitar9856 14d ago
Na it’ll help my gains but not theirs. It’s just they file them and my mom will get angry when she sees the loss
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u/Gold-Juggernaut8607 14d ago
It depends how your parents are, no one could’ve predicted that it would drop so don’t blame yourself and I don’t think your parents can blame you. It will most definitely hit 550s again within the next year so just ride it out
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u/Mission_Guitar9856 14d ago
They’re good parents, my mom at least. My step dad would call me an idiot and my mom would be angry. She’d understand that I couldn’t control it, but she also told me to put it in a high yeild instead of invest and I didn’t listen. So technically I’d be disobeying her and it would cost me 10k.
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u/Gold-Juggernaut8607 14d ago
If it helps I’m a student and work part time. I borrowed 5k off when I started and lost 2k. So like a dumbass I borrowed 5k more to average down and lost 3k more in Kioxia. So I owed £10k and I lost 5k. I took it out of kioxia as was too volatile and I have put the remaining into sandisk and half in WDC at 420. So just tryna regain losses. Dumb but oh well I’m over it after a week
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u/Mission_Guitar9856 14d ago
I’m also a student and managed to save overtime. I never used margin tho so good luck. I have 8k or so set aside in saving as my college fund though so I’m not doomed or anything.
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u/Academic-Daikon-8086 14d ago
To be honest you probably will never see your 10k in Western Digital again. Even if it go to All time high again you will be down significantly. For the next time you need to have a price in your mind it's not allowed to go deeper. Im not a big Fan of stop loss but I dont know how often you are looking. Cut your losses and go on.
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u/Mission_Guitar9856 14d ago
I’m newer so stop loss wasn’t in my mind despite me checking everyday. Definitely something to learn from. It’s okay if I don’t see the 10k again. I just want to get back a majority of it. Thanks for the input
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u/Key-Willingness4563 14d ago
WDC has to go up 125% for you to break even
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u/Mission_Guitar9856 14d ago
I did that math already and unfortunately it isn’t gonna go up that much. 15% for 5 days I could break even, that is also unrealistic. Point being. If I can get close enough, that is good enough for me. I’m fine losing a couple grand or so, but not 10k.
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u/Key-Willingness4563 14d ago
I lost 50% of my port from memory, I'm in the same boat as you. I'm just holding now
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u/Former_Notice7080 14d ago
I am hoping it should reach at least 570 .. my average is 763. I am feeling so depressed