Lessons from the Netflix
Good morning and welcome back to the coliseum, where the gladiators battle the machine. The markets are down and down with some aggression this morning and that comes as no surprise to me, per my notes here yesterday. I’ve trimmed down already and am likely to even add to the shorts or sell some more on rallies.
As for Netflix, a trade is a trade is a trade and I’m taking the loss on these calls. I had this email dialogue with a friend of mine, a guy who helped build up one of those Silicon Valley companies that it became so powerful as to be investigated by anti-monopoly departments around the world. Nobody’s right all the time.
Him: Freaking Netflix. Ouch. I got this one wrong wrong wrong. Hurts.Are you going to cut bait? Or hold onto them. It’s down like 30%. damn.My gut tells me to not sell tomorrow. But I’ve gotten Netflix wrong wrong wrong the past three months. Jesus. I could buy a nice car with the damage they’ve inflicted. Ouch! 😉
Me: Hang in there. I have hardly any calls and I am dumping them tomorrow for a loss. You will get this back some day in another trade no latter what you do with it tmrw.
Him: i hear you. i hear you. tough one though. man.so you are just cutting bait on nflx? selling it all tomorrow? i may do the same. we’ll see how far it falls. question for you…why not wait it out? i do think down 30% is too much based on the quarter and guidance.holy cow. these guys have destroyed this business. i still love the service though.Me: I am selling because it is a tiny trading position and I am not going to let it become an investment. A trade is a trade is a trade. So I have to move on. I don’t know what I would do in your shoes bro. It will be okay tho. I promise that much.
Him: i’ll probably hold on. may as well ride it out. lost so much already, may as well see what happens. ugh.thanks for the support. i hear you. portfolio approach. unfortunately i chose the wrong name to get heavy in. without it, i’d be way up for the year. with it (i.e. reality!) i’m still down a little. oh well…don’t play with what you can’t lose. lesson learned here though…i never thought this would happen. I should have known that because i thought today/last three months could not happen, that it most definitely WOULD happen. 🙂 lol.thank you brother…hope all is well.
Trading is tough. For everybody sometimes. Keep your heads up.Now let’s go find the next winner instead of dwelling on these past mistakes, of which every trader and investor has many.Here’s a better note to end on, from another subscriber to this service, in response to my mea culpa about Netflix last night:
Her: Don’t apologize. I sold late this afternoon before the close for a 63% gain. Good tip.
Thanks, but mea culpa again anyway. I wish I got every trade right every time for you guys. Will keep working my butt off to get us the next one though!
Hold Your Head Up-Argent-1972-(Long Version)
