Ride Lordstown Stock — My Worst Trade: From $90,000 Loss To Making A Profit?

Markus
12 min readJun 15, 2021
ridofranz via depositphotos.com

You know, on YouTube, all these traders, they’re always showing you how much money they make with trading, but very few of them are actually talking about the bad trades.

Well, you know what? I thought today I’m going to address this head-on because many of you had questions about a bad trade that I’m in. That trade being RIDE, Lordstown Motors.

I want to discuss why I entered the trade in the first place, what went wrong with this trade, how it is hurting my account right now, and what I’m personally doing to get out of it.

Why I Got Into RIDE

So far my realized profits for the year to date are at $94,476. So that’s pretty good, right? I mean, for trading for only 6 months and this is on a $250,000 cash account, which I’m using as a margin account.

So I have a stock buying power of two to one. So $500,000 in buying power.

Well you see, all of this would be handy, dandy, and good if there weren’t this one pesky, huge unrealized loss. This huge unrealized loss comes from one trade, RIDE. Now, I want to tell you first quickly why I got into this, and then I want to show you what happened, what I’ve been doing so far, and what I’m planning to do.

Back in mid-February or 2021, I am with my kids at a sailing regatta in Florida, and we’re doing good. I have a few positions on, all is planned and then this massive snowstorm hits Austin, Texas. Snowmageddon! This meant that we are trapped in Florida. Yeah, boohoo, could be worse places to be.

Anyhow, I’m there in my RV. So it’s a 44-foot motor home and we are stuck there, and you know what? I’m bored out of my mind, and this is when I start tinkering around with my trading plan, which I definitely shouldn’t have done.

So I’m entering a trade and I’m taking it with my Mastermind group. And I say, “you know what? I am going to take an aggressive trade.”

Trading while bored is never a good idea, and I don’t like to trade the usual trades. But there was nothing to do, so I wanted to take a more aggressive trade. At that point, I liked Lordstown Motors and its story. Again, this is mid-February, way before Hindenburg…

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Markus

Markus is a self-made multi-millionaire who was born in Germany. He came to the US in 2002 with $30,000 in his pocket and a dream to become a successful trader.