April 20, 2022, 11:22 am EDT
Netflix Tumbled Lesson
The lesson from Netflix (NFLX) tumbled -36% today is that do not buy a troubled company. If you follow this simple principle in your investment, you would avoid a lot of big losses that many people made.
NFLX already suffered a gap-down in January 2022 after the earnings report. It fell from 520 to 400. This is the company you should stay away from investing any amount of money. A troubled company could turn around after making a bottom or base but it takes time to prove itself. There is a strong message for gap-up or gap-down that we should respect and listen to.
If you apply this principle, you would avoid similar companies like FB. Focusing on the leaders not losers will change your mindset to higher ground.