Nov. 11 at 5:01 PM
$UVIX I trade alongside several full-time friends and family, and we regularly hold virtual calls to share ideas.
One younger trader in our group had been emotionally locked into
$UVIX,
$SOXS,
$FNGD, and
$SPXU since March—desperate to recover losses from oversized short positions.
He was convinced the spring crash wasn’t over and that the rally was irrational. Meanwhile, he kept averaging down into leveraged inverse ETFs as the market climbed.
One day, he vented about finding alternate routes to commute to work to avoid a construction traffic jam. I asked, “Why not just stay on the same highway through the jam?” He shot back, “Are you stupid? Why would I do that?”
Another friend chimed in: “Then why are you still doubling down on losing shorts during a major rally?”
He snapped, “It’s not the same.”
But the next week, he texted us—he’d finally closed all his shorts. That was early August. Now he’s relieved to be down just 10% for the year, instead of 30%.
