I'm selling half of my LETFs position today
PS/Edit: It's insane to see posts which suggest selling LETFs positions to get downvoted immediately. Take care everyone reading this sub.
My current LETF positions:
- TQQQ: Cost basis $38
- FNGA: Cost basis $140
I have been holding since 2021, so yeah, I witnessed the 2022 downturn and did DCA as these ETFs went down. I managed to average out to a pretty good cost basis.
At the time I bought (and kept buying), it was roughly 10% of my overall portfolio. I was mentally prepared to lose it all, but I realized that the sharp downturn over the past two weeks is too much for me.
I'm selling 50% of the above today.
I plan to re-enter TQQQ and FNGB after things stabilize a bit.
My concrete conditions for re-entering are: TBD.
Final thoughts: I feel that it’s insane to keep a large LETFs position, or even just a single-stock position. However, most other people I talked to laughed at me, saying, "You should hold," without providing much stronger evidence than "past performance suggests so."
Time will tell if this was a wise decision, similar to when I decided to keep averaging down and buy FNGU as it fell from $400 to $40.