Thank you all for responding to my query. Just to clarify, this wasn't a "troll thread", it was a genuine and sincere question to a problem I needed to deal with ASAP. I carefully considered everyone's responses and I've decided to hang on to the shares for now. Let me explain why:
I've had one too many liquidation violations in the past couple months. E*Trade (my broker) has put my day trading account in review, so I cannot buy on margin for 90 days. I can only sell. So if I were to take this loss and sell these shares, I wouldn't be able to repurchase them on margin until sometime in early March. So basically I'm stuck with what I have. I cannot add any new positions even if I sell these shares (Twitter or any other). I can't wait until March to try and repurchase these shares because the price may have risen significantly by then. Twitter's next earnings are in mid/late Feb, and they may have some good news. I don't think this stock is a total dud. I'm not a huge fan of Twitter, but it's not some fly by night penny stock. I do believe it will eventually recover, or get acquired by Apple/Microsoft/Google if it goes low enough. This might take a few months. I might as well hold on to these losses even if it takes 6 months to recover. I might not get back my entire investment, but I'd rather lose $10-15k than $200k.
I'll write back in a couple of months and let you guys know how the decision worked out.
To answer one of the commenters, yes I am a "trader" in the eyes of the IRS. I trade daily and consistently with large sums. So I could offset the loss against next year's earnings if necessary.
thanks again everyone, and wish you all a prosperous 2016!
I've had one too many liquidation violations in the past couple months. E*Trade (my broker) has put my day trading account in review, so I cannot buy on margin for 90 days. I can only sell. So if I were to take this loss and sell these shares, I wouldn't be able to repurchase them on margin until sometime in early March. So basically I'm stuck with what I have. I cannot add any new positions even if I sell these shares (Twitter or any other). I can't wait until March to try and repurchase these shares because the price may have risen significantly by then. Twitter's next earnings are in mid/late Feb, and they may have some good news. I don't think this stock is a total dud. I'm not a huge fan of Twitter, but it's not some fly by night penny stock. I do believe it will eventually recover, or get acquired by Apple/Microsoft/Google if it goes low enough. This might take a few months. I might as well hold on to these losses even if it takes 6 months to recover. I might not get back my entire investment, but I'd rather lose $10-15k than $200k.
I'll write back in a couple of months and let you guys know how the decision worked out.
To answer one of the commenters, yes I am a "trader" in the eyes of the IRS. I trade daily and consistently with large sums. So I could offset the loss against next year's earnings if necessary.
thanks again everyone, and wish you all a prosperous 2016!
