This is what happened. On Feb.02. I bought a few Shares of SVXY. I was down a bit when the Market closed, but didn’t worry at all. Next Monday the 5th. SVXY went further down, so I averaged down on Margin. It went further down and closed at around $70. We all know what happened then. This piece of junk dropped to $10 in after hours trading. The big Problem for me was, that I didn’t buy Stocks, but CFDs. I can not buy or sell CFDs in premarket or after hours with my Broker. So the first Margin warning popped up. My account Value dropped and dropped and I couldn’t do anything. What a Nightmare.
The next day SVXY was halted, so I still couldn’t do anything until it was available for trading again. I had to close it slightly above $11 and my Broker Account had a negative Balance.
So what did I do wrong:
1. I bought CFDs instead of Stocks, because I only have 3 Day Trades per week with Stocks. Bad idea, because I couldn’t close them after the Market closed.
2. I averaged down, which is a no go. Always !!!
A lot of things went wrong that day. How could this thing implode? I still don’t understand why this happened in after hour trading.
Anyway it is time to move on and learn from it. Blowing your Account is the worst thing that can happen.
Fortunately I didn’t buy more SVXY Shares before this piece of shit imploded.