Flix

By | July 18, 2019

The lesson of the Netflix crash: Beware of hot stocks, says Brett Arends.

That’s not the lesson — the lesson is to know when to get out. I made 311% profit on Netflix and was very happy with that. Realized it was time to get out, and did.

I had some goofus tell me that all my trades were just statistical flukes and that one day, I’d lose all my money. Not gonna happen, not unless the entire society does as well.

What this mook didn’t understand is that I don’t trade on numbers or quant BS but on psychology — and that can’t be quantified and can’t be understood by people like him. He assumed that because I didn’t have a method that could be written down in an equation that I had no method.

By the way, the same mook DID lose all his money to margin calls when I told him he should exit the market shortly before the NASDAQ crashed in 2001. So some justice was served and a laugh was had by all. Well, by me at least.