If you’re getting tips from this guy, you’re doing it wrong! The talking heads on CNBC are paid shills and nothing more than an advertising agency for Wall Street.
…. And since Jim Cramer tweeted to BUY NFLX on Jan 3, NFLX is down over 60%!
The great Jessie Livermore once said “The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.” This is why risk management is key to successful trading to avoid debilitating drawdowns in Bear markets.
But the guys on CNBC won’t tell you that. They want you to just BUY and keep the gears of Wall Street churning. Then at the worst possible time, when FEAR is at its greatest their probably going to scare you into selling.
Here’s what happened to NFLX since Jim Cramer said BUY!
Now with NFLX down over 60% here’s what Jim has to say:
- CNBC’s Jim Cramer said Wednesday that investors should stay away from Netflix stock and explore other options.
- “Netflix seems lost at sea without a plan to find the shore, and I think its pullback actually was deserved,” the “Mad Money” host said.
I think someone could probably be a great trader just doing the opposite of what this guy says. In fact there is an account on twitter who does just that! check out Inverse Cramer ETF (Not Jim Cramer) (@CramerTracker) / Twitter.
A lot of the great growth investors over the last few years are getting taken to the woodshed. Their strategy involves buying high-risk growth stocks and holding them forever. Jessie Livermore would not approve, and neither do I. That is why I use advanced options strategies to always have defined risk on every trade I make. Real traders use stops! Don’t become a bag holder!
I personally think NFLX is coming very close to being a great buy at these levels. Most of the bad news is out of the way, and so long as we don’t have a market crash/bear market, NFLX could be a nice trade around the $200 support level. I will wait for the technicals to align, and when the time is right, be sure to let subscribers know!
Here’s another great investor stuck holding a NFLX bag:
The stock is down around 40% from when Bill Ackman bought the 50% dip from the highs. A lot of big guns are feeling the pain, so one more shakeout could present a great buying opportunity! When these big investors are ready to puke, that’s when I want to be scooping up shares on the cheap!
A lot of people canceled their Netflix subscriptions due to rising living costs, but in their conference call, NFLX mentioned they could get advertising figured out in the next year or two. This means NFLX is looking at extra revenue from paid advertisements on cheaper plans. Once the market takes this into account, a big bounce could be on the cards!
While Jim Cramer is telling you to BUY NFLX at the top and SELL at the bottom, I use my own brain, and in this case, that’s doing the opposite!
