To no one's surprise, I got burned pretty badly with BBBY. I wasn't even waiting for a squeeze or anything, thought of this as a great albeit risky opportunity to day trade and scalp some profits off the momentum swings. I started well, was in and out in 15 mins, and profited around $1.7K. I got too comfortable and went in again in the last 20 mins from market close when the Ryan Cohen selling his stake news came out. I didn't have time to assess and got caught up in all this. I dropped $33K at $25.8 and stock plummeted to $18. Instead of cutting my losses, I held like a jackass in hopes the news wasn't real and that it would reverse back to $25 for me to exit without a loss. The next day it started to pick up momentum to $19 towards the end which gave me hope that on Friday with a lot of calls ITM, this would surely shoot to $25. After market close, the news became official that RC had sold his entire stake and the stock plummeted completely and my brain couldn't even function. I panicked sold it all and took a $17K loss. Basically cut my capital in half with a 50% loss.
I thought I learned my lesson from my previous failures with GME and another merger gone wrong but I didn't. I took $40K losses combined on those too.
I seriously thought this would never happen again but getting into this meme crap will always burn someone who got in late and FOMO's even just to day trade.
I have $26K in cash left and in my mind, I want to revenge trade and get back the $17K I lost. I know options would be my best bet to maximize my returns but if things go south, I will be left with nothing on those so I'm not sure if that's the play. Not sure if day trading options with little price movements would be a way to make quick profits. I've been doing a lot of calculations and strategies on ways to make back the $17K but I'm way too shook. This was obviously money I couldn't lose so I'm really depressed right now.
I know revenge trading will most likely go wrong and I could possibly put myself in a bigger hole but that lingering feeling to win back my losses is too strong right now. I've already decided to quit trading but I just want that last chance of making my losses back before quitting and transferring everything back to my bank.
I'm also looking into buying blue chips and just selling aggressive covered calls to get a decent premium. Obviously, if the stock falls, then there goes that plan. Or day trading blue chips where worst case scenario, I'll have to hold onto fundamentally strong companies.
I don't know what to do right now, I thought I learned my lessons from the previous 2 failures but apparently, I have 2 brain cells to function with. I even told myself the importance of cutting losses but when I'm in the trade, I forget that and just irrationally hope it goes back up so I can break even. I could have just sold at $18-19 and taken the hit then. I also planned to sell deep ITM $5 strike covered calls which would have netted me $16k i premiums and a 25% loss instead of 50% but decided against it thinking Friday might rally. Hindsight is 20/20 but not sure why I don't ever learn
I know I sound emotional and may just end up losing it all again but I can't stomach how much hard-earned money I lost any more. Fucking sucks and I may have a mental problem where I keep getting myself into these dumb situations.
Leave a Reply