3 Smart Trading Lessons From Netflix’s Crash
How to take advantage of weekly key market-moving events using Egmarkets’ EagleTrade
In an interesting turn of events, Netflix announced this week that it lost 200,000 customers in Q1 and forecasts a further loss of 2 million in Q2. This will be the first time in 10 years the streaming giant has reported a decrease in subscribers. Following the news, Netflix’s stock crashed to a four-year low.
This spectacular collapse of Netflix’s stock once again highlights some big and profitable lessons many traders can learn from:
Read Your Economic Calendar
One major key to successful trading is consulting the economic calendar. The economic calendar not only helps traders to better understand why the market moves in a certain way but to anticipate these moves as well.
Knowing that earning season affects the markets and companies like Netflix are due to release their Q1 reports means that as a trader, you are better poised to take advantage of ensuing volatility.
Get access to a full suite of the Economic calendar when you trade on our new and powerful EagleTrade platform.
Trade the News
A continuation of the above point, there are almost always key market-moving events every week that offer potential trading entry points and its important to always be on the look out for these volatile moments. This week’s opportunity just happen to come in the form of a 35% drop in Netflix’s stock. Had you gone short on Netflix using the EagleTrade platform, you would have certainly laughed to the bank with your own share of the $50bn that was wiped off Netflix’s value.
Besides tight spreads and fast execution, EagleTrade gives you free access to real-time news feed on the platform so you can make informed decisions on market-breaking news pronto!
Netflix is Losing Grip
While this is the first time in a decade that Netflix will lose customers, the company’s plans to sell an advertising-supported version of the service in the future and the fact that Bill Ackerman just took a $400 million loss from Netflix means this is one stock to keep in your watchlist.
Guess what? That’s right.
You can easily add Netflix to your own custom Watchlist on the EagleTrade platform and track its movement easily. That’s what we call A1 trading.
Some trading mistakes are unavoidable, but it’s important that you learn from your errors. Stop missing out on the wealth of opportunities that avail in the markets and take advantage of the numerous resources Egmarkets has to offer.
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