The 20% Micron Crash: What You Need To Know Now

Micron is down over 20% in just one trading week. What's going on guys? It's Ricky with Techbund Solutions and this is a question I have been answering so much today that I needed to make this video. So, first off, congratulations to everyone that shorted the market as it sold off, especially the memory chip space. It I don't it's not that oh, we called it. It's anyone can see that it was technically overbought. NASDAQ market was at all-time highs. This is a slight pullback. This isn't a crazy crash, at least not yet. Um, and this is healthy, right? This should excite you if you're an investor. What I want to answer in this video is if I was a beginner, how would I go about buying Micron? I don't think a lot of you are going to actually like what I have to say, but I know that even if just one of you understands the significance of what I'm saying, you know where it's coming from, and you know it's with good intention. So, if you guys have not seen it, Micron Technologies just a few days ago was trading at highs of $1,113. Again, it's one of the best performing stocks of 2025. It's one of my favorite stocks right now. It's a a super great company. Not just technically, at least it was, but also fundamentally it I'll I'll talk about that in just a little bit. But from 113 today during the aftermarket session, we hit lows of like sub $900. I think it was like $887, $888, something like that. A 20% sell-off, 1if of its value gone in just one week. First thing you should acknowledge, it's a very volatile stock. Again, it's one of the best performing stocks of 2026. Now, again, the question, if I was a beginner, how would I go about investing into Micron or trading it, right? The biggest mistake in my opinion that a beginner trader makes, including myself, especially when I first got started, is what? When you jump into a position, you try to squeeze in every penny you can. If you're offered 2x leverage, 4x leverage, you're like, the more the marrier. You are an adult. You can do whatever it is that you want. I I want you to know that. I have no reason to say this other than I just hope you don't take such a large position that if markets do get worse before they get better. There's no question that I see this as an opportunity to buy the dip. I do not believe beginners should be shorting. Part of our LPP team, including myself, we do like to act actively short. It comes at a greater form of risk. I always share the risk that no, I don't want beginners copying that. But again, we're all here for the same reason. It's to make money. There is no question that you can make more money, especially during a bull market, which is what 2026 is, going long than to go short. direction is in your favor, but it's how you go long buying the dip and how you do it that can really set you apart. We are in a culture where it's just leverage everywhere. What's going on in the South Korean market? Why is the KO SPI index down 35% from its all-time highs? Leverage. People get too greedy, especially at overbought levels. That I'm just going to talk about this in the simplest way. If I was a beginner and I was trading with, I'm just using this as an example, $10,000, right? And let's say that the brokerage account I use Weeble, they offer me 2x leverage because Micron is as close to a a blue chip stock as it gets. 2x leverage is relatively pretty conservative. I know a lot of brokerages out there offer a lot more. I'm just using this as an example. $10,000 is what I have. 2x leverage is what the I have the option to use. You're not going to like this. I think for a beginner, if you see value in Micron, we're just using it as an example. You can view any company as a potential dip by opportunity based off of the current selloff. I think it would make more sense having $10,000 and the option to trade with $20,000. That's what 2x leverage is. I think it would make more sense to buy one share. I would rather have a beginner buy one share than to buy 20 shares. But Ricky, how am I going to become a millionaire buying one share? You're not. Just like you're also not going to become a millionaire when buying it with 20 shares. Let me explain to you while you're fixated, which I'm not just saying it's you. It's all of us. But it's it's a learning curve. And even when you do begin to learn it, you still make the mistake from time to time. I'm telling you this because I've made the mistake more than you have. What often happens when you go all in into a position? Let's use Micron. It's just an example. I buy the dip on Micron. Cool. I have $10,000. They offer me 2x leverage. I go in with 20K. Remember, I have 10,000 in my account. That's my liquid balance. Markets begin to Let's say PPI data report is tomorrow. It comes in worse than what was expected. it continues to drop based off previous lows. Let's just say it's always the what if, right? Let's say it does sell off. It has another 20% to sell off. But 20% of now $20,000, right? 2x leverage. What is that? $4,000. You just lost 40% of your initial balance. So, if you end up getting margin called, as they normally would margin call you when you're down 10 to 20% of whatever your account balance is, and they'll say, "Hey, you actually have to fund your account. If not, we're going to force to liquidate your position. Now, let's say that you get forced liquidated, right?" Okay. Now, you lost $4,000. Now, you have $6,000 of buying power and now you're kind of shaken out. You're discouraged. And now you don't even really know if you want any exposure in this stock because you feel like you were wronged. You're you're just you're I don't I don't want to partake in this market anymore, right? Versus one share. But Ricky, I have the option even with the cash that I have to buy 10 shares. Yeah, I know. But I think that as a beginner, you need to learn how to walk before you run. And I get it. It's so boring. I just want you to see what's possible and not that's just oh it's going to recover to all-time highs. Sure, I think that it can or to previous highs 20%. Right? It doesn't matter if you buy one share or 10 shares 20% is 20%. Be like, okay, but with $1,000 or $900 I make 20%. What am I going to make? 210 bucks. Not going to become rich, Ricky. Yes. But in the process, I believe that if there is a draw down before the recovery, it's such a small dollar amount that if you are down 5%. You would see like, oh dang, it doesn't really bother me because I'm only in with one share. I'm still experiencing it, but I can do the math in my head. Oh, wow. If I went in with $20,000, down 5%. I'd be down $1,000. Technically, that's what that's 10% of my account balance. It's like, yeah, that would have probably made me feel a little uncomfortable. But just because now you're only in with five%, you're like, okay, like you're only in with one share, 5%. Like, okay, that's not that bad. 50 bucks. I can tolerate that. Let's say that, oh, wow, it sells off a lot. Okay. Yeah, that kind of sucks. Hey, I'm really glad I only bought one share. I'm still in a position where right I have the option to buy more if I want to which having the option to do something feels like an immense privilege when opportunity is presenting itself and you're not forced to sell anything. You can't get forced to liquidate when you buy one share and you it's onetenth of your account. You're just so well positioned that you can tolerate the worst. So many beginners are always so fixated on it's going to go up. One of the worst things that you can do as a beginner is use leverage. Only think that it's going to go in your favor. Not weigh out the option of risk and then when it does go against you. Leverage is a terrible vehicle when pushed up against you. It will only exacerbate the feeling of loss and helplessness. If you are truly trying to be an investor or a trader for no one else but yourself, don't discourage yourself with being irrational, uncalculated, and hopeful. There is no question in my opinion that at least for right now Micron is a great company. I'm just using it as an example, right? You don't it's whatever stock you want to invest in. I'm just using this as an example. There's fair value 43% upside 12.2 P ratio very low in comparison to competition. Revenue 133 billion net income 80 almost 85 billion. Insane. There's the concern, right, of like, oh, this might be cyclical. There might be, you know, competitors in China, although they can't really compete in the space yet because US companies can't buy that, but it's it's a headline fear. Cool, right? You're positioned to tolerate volatility with one share when you can buy 10, right? When you look at the Pro Research, I can see all of the good, all of the bad. making yourself aware of, okay, you know, even before I buy that one share, I understand the bare case. I understand the bull case. I'm aware fundamentally about what I'm buying. I'm aware technically of what I'm choosing to take advantage of. You can formulate your trade plan. Okay, I plan to buy one share here. I know that it can get worse before it gets better, but that's why I'm buying one share. And then you can always revisit. I mean, you can set up a stop-loss wherever it is that you want to manage and mitigate risk. If you're a little bit more experienced, then you know when to average up when direction begins to go in your favor, but still not to the point where you're overexposed. The worst thing that you can do is biting down more than you can chew, especially when you use leverage. So I was sharing this concept with our LPP team and talking to about uh talking to our team also within our close friends group on Instagram. I think it's such an important opportunity to acknowledge right now there is fear right now. It's so funny because just about a week ago or 10 days ago there was no fear market. You know ME was trading at 1,100. People thought it was going to hit new all-time highs once again and we're about to hit earnings week which again is can can just create more of a catalyst either for the bulls or for the bears. still don't know yet. And because you don't know, that is why you position yourself to tolerate. But like we are in such an opportunity right now, and this is what I shared with my LPP team this morning, that it's such an opportunity, especially in my opinion for these memory chip stocks, that if you ruin it for yourself because you buy too much too early on and then you're like, "Oh, this was terrible. It kept selling off." No one can can predict the future. Biggest asset managers cannot predict the future of what's going to happen. You can make up any excuse, any story about what, oh, it's rigged. No, you rigged it for yourself because you put yourself in a position that you couldn't tolerate volatility on a stock that is incredibly volatile. I have no reason to say this besides the point that I do want to see you win. And I often come on YouTube, I talk a lot about risk management. I talk so much about position size management. And I know I short, but when have you ever seen a video where I encourage beginners to short, right? I I'm here for the same reason to make money, but I acknowledge that there are series of trades that I do take that are of greater form of risk. And I love making you aware of that so you don't blindly just assume to do the same thing. You can make more money going long than going short, especially in a bull market. And that is the current sentiment. We are currently pulling back. There's an opportunity. Don't ruin it for yourself. Don't use leverage. Create a plan and put yourself in a position in which you can tolerate volatility. There are so much opportunity out there right now. All you have to do is make sure that whatever wherever you plan to buy and where you plan to sell outweighs, right, the risk-to-reward of what you expect to make versus what you plan to give back. And the goal with this is that as time goes on, instead of you just buying with one share, you're going to gain more experience, more confidence, once the setups become a little bit more, you know, just second nature of, hey, here's another oversold reversal. Here's another overbought reversal. Fundamentally speaking, this is a good company. I want some exposure. you can begin to increase your exposure appropriately as you begin to learn more and gain more experience. It makes sense on why you begin to trade more and position yourself with more exposure because you have the experience to tolerate whatever might happen. It's like a business. You scale accordingly. I don't care if you have a million dollars to your name. A bad trade is a bad trade. And a good trade is one where you position yourself that your upside is significantly greater than your downside. And that you position yourself knowing that this stock is incredibly volatile. Yes, we all know it's one of the best performing stocks, maybe top three, top five of 2025 or I'm sorry, 2026. I love that. You can still fail, right? If you look at the stock uh very quickly, I want to show it to you. If you look at the stock in the most recent um the previous pullback when it went from highs of $1,200 where people thought it was only going to continue to rip up, it sold off 40% in 30 days. Imagine if you use 2x leverage. There's platforms that use forex leverage that offer traders forex leverage 5x 10x. You being down 40%. You would drain your entire account. That is the reason I think it's better to buy one share when you can buy 10 instead of buying 20 shares when you only can buy 10 or when you only have the dollar amount to buy 10. It's better to be light than to be leveraged in my opinion just as a beginner. Once you understand the importance of risk management, position size management, you gain experience, you can begin to be a little bit more adventurous and you'll [snorts] still make mistakes along the way. Again, people get upset when I speak like this because it it is too cautious for some. And what I have to say about that is, you know, it's I'm not for everyone. I'm not going to pretend to be, right? But I hope that you know that my intention when I say this is even if you just buy one share and it does end up returning back to 1,100, you make $210 per share, whatever it might be. Cool. I I hope that that inspired you and motivated you to continue to grow and get better at this. And yes, as time goes on, maybe put more money behind it as you feel like you are growing and understanding just as quick as you are growing your account. There are many times that people are outperforming their actual understanding of the market during a bull market, especially if it's incredibly bullish and there's great momentum. I've seen people where they feel like they know it all because they've made a lot of money within a very short period of time, but they're beginners that just took advantage of an opportunity that was very favorable based off of timing. And eventually, it's only just one bad trade when you don't know how to manage or mitigate risk to give it all back. We've all been there, right? It's no exception. And guess what? You get discouraged. You never want to do it again. This market's rigged and you move on. But no, it's simply because you put yourself in a position you couldn't tolerate. And that's my two cents for the day. So, I appreciate you guys gadget's time. I hope that this video motivated you to seek opportunity to create a plan with an edge that is in your favor and to put yourself in a position in which you can tolerate. Again, I trade live every morning. It's designed for beginners. It is not for you to copy. It's part of my LPP team. If you guys have never checked it out, again, it's a onetime payment, lifetime access. Right now for October it's 225 off. We have a bunch of beginners all over the world mainly in the United States but all over the world over 5,000 5,000 students. And again every morning at market open for 30 minutes to an hour. We go live. You can watch a recent live session before you join. I want you to fully understand what you're about to enroll in. All of our live sessions are fully archived. 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