Thank you NIO for the gut punch back into reality!
I lost $1,300 day trading on NIO calls during the dip this morning. If I had held I would have broke even, but in the heat of the moment I wanted to save my investment for fear of NIO going even lower.
Sigh… paper hands….
But it was a good lesson learned for me. I had failed to have an exit point (stop loss) for it and instead of selling at -20% I ended up selling at -50%. That really hurt. In the future Im going to have an exit point in both directions of the trade. Good or bad!
The dip today also made me realize just how overleveraged NIO was in my portfolio. In addition to those calls I lost money on, I have a decent stock position. I'm still WAY up overall, but NIO made up the bulk of my investments. It made me realize that if NIO where to crash down for real (not just todays dip), then I would have been screwed. I decided to take some rather substantial profits and have diversified into other stocks.
I still have a position in NIO and will still trade calls on it, but from now on I am going to manage my risk better. I know that's not a popular thing to say around here…. >_> But I feel its the responsible thing to do, lol!
Anyways, thanks for reading!
Submitted November 10, 2020 at 09:15PM by [deleted]
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