SOXL Is Down 12% — Am I Crazy for Still Holding?

$Direxion Semicon Bull 3X(SOXL.US)

SOXL is now sitting at almost a 12% paper loss for me. Not exactly a comfortable number, especially when 3x leverage is involved. But surprisingly, I am not changing my thesis yet.

My view is simple: the semiconductor cycle still has strong structural drivers. AI infrastructure, data centers, advanced chips, HBM and memory demand are still expanding. A leveraged ETF like SOXL will amplify both the upside and the downside, so I expect the road to remain volatile. I am more focused on where the semiconductor sector is heading over the next several months than on one red position today.

I also do not want to chase every rebound. If the sector gives us another meaningful pullback, I would rather use it to average in gradually than panic-sell at a loss. The key for me is managing position size and keeping enough patience to survive the volatility.

Almost -12% looks painful on the screen, but paper loss is not the same as a broken thesis. For now, I am holding SOXL and staying cautiously bullish. The question is not whether SOXL can be volatile — we already know it can. The real question is whether the next semiconductor rally will be strong enough to reward those who stayed disciplined.

Would you hold through a -12% drawdown, or would you cut the position and wait for a better entry? 🐯