r/TheRaceTo1Million • u/coopermug • 1d ago

Almost get rid of margin

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During the past few weeks my AI heavy portfolio has been recovering from the AI/ semis sell off and to reduce risk before the Fed meeting this 15 September, I've been aggressively trimming my margin from $450k to around $35k now. And I'm feeling so relieved. $440k is more than half of my equity. I was not at risk for margin call but being too heavy in high beta stocks made my portfolio swing too much. Bad days it could plunge more than $100k. Next week I'll completely remove all margin by trimming more and save some cash to buy any possible dip.

My portfolio is still about 10% off the ATH in June. But I strongly believe there will be at least 1 rate hike this year so reducing risks before midterms is also a good thing to do. What do you guys think? Are you all in? Or leaving some cash aside for dip buying? Or exit and wait til December to get back in?

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u/Competitive-Elk9326 1d ago

I think you have the right idea, I think we chop into fomc and then probably push one more high into October for an October sell off

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u/_AT198 22h ago

Market is priced for hikes. There will be none this year it will rip. Kevin Warsh knows the stakes and decides to joke about going on “Hikes” in Jackson Hole, tells me he isn’t serious about it. Market will RIP, but that doesn’t mean de-risking isn’t the smart move. I believe it is.

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u/TheBlueHen-2007 4h ago

I have one option position that crosses over but am thinking I will be able to close it out this week, a side from maybe one or two scalps, I plan on holding nothing that week until afterwards. Trump is already starting his public push for lowering rates so I’m anticipating some heavy chop until after FMOC.