I found a type of shopping I actually enjoy!

Sat in Wetherspoons, it's 6PM. Nasdaq currently -2% and trying to break 14k levels.

I'm sat listening to Taylor Swift, being stared at by a bunch of drinkers on table 68, whom are covertly discussing what they think  I am doing from my laptop - no doubt if they knew I was typing about them they would probably not be too happy.

Etoro feed is filled with panic, fear and doom, and I must say I am quite enjoying it. I have said for a few months now, that I had come to the realisation that leveraged trading only ends one way in the long run. And today some of the most popular traders are blowing their accounts.

I don't enjoy being right here, it sucks to watch people lose money, but it is quite satisfying to be right regardless.

Today it's the long traders turn, with such a drop recently people have started to capitulate, either through Stop Loss orders or through panic. Leverage just increases this dangerous emotion - I know this first hand, having attempting shorting the Nasdaq from 10-13k earlier this year.  

I won't waiver from this belief, even if some of my closest friends are themselves leveraged traders.

I've lost a fair fortune in the last few days, my SOXL position is collapsing - and that is great. I had bought at $20 or so, and had never imagined such a great price below. Yet here we are at $14 only a few days later.

I get paid tomorrow, and after all bills are out, and food is bought, I know what I am doing. It's hard not to.

My SOXL position is with the target of between 120-150% gain over the next 3-6 months. 

There is only one disadvantage to this trade, in that the longer it takes, the higher the leverage decay, and as some have correctly pointed out, it would have been a wiser trade to short SOXS, the inverse of SOXL, which is guaranteed to go down over time due to the leverage decay effect of inverse ETF's.

However, this implies me being able to extend SL's in the event of a significant increase (etoro defaults SL's on even unleveraged shorts to 50% loss) - For this to be possible I would need both additional capital to fuel the extended Stop Loss, and the time to monitor such movements, which can happen very quickly.

When markets are going down, I prefer not to watch. Buy and log off. I am not the most emotional person, but we are all human and I want to avoid an emotional response to any further drop - which seems likely in the short term.

We have AMZN earnings after close tonight, and I will probably still be sat in Wetherspoons. 

The latest few earnings have been a mixed bag, but even the positive results have mostly ended in a decline of the stock. NFLX has kept its high, but there is now a gap to fill.

Last night META flew 5% and then pre market lost that 5% and added a 5% loss.

GOOG collapsed 10% on cloud data fears - which doesn't bode well for AMZN's AWS, so that is also down a further 6%.

Overall, a lot of cheaper stocks, and it seems they might get cheaper!

Whilst people pile on their shorts, I am preparing for what I see as the start of the next Multi Year Bull Run.

Perhaps this will age well, perhaps not. Either way, I am ready to average down into my positions. Bring it on.

Marau.