Investment Week Learnings - Stick to your strategy
This week has been a good week up to now: I executed my new strategy: 1) When you see a major spike or dip post earnings AH, go the reverse and sell PH My argument is that it takes an overnight to subdue to shock so you are in to capture to 1-2%. This worked for every stock I've tested it on: 1) Shopify 2) Starbucks 3) Apache 4) Microsoft 5) Netflix - All of which worked excellently. Then I decided to deviate after the strategy failed with AMD. I used the same strategy and it backfired. AMD continued spiking post 10% AH rise. I had to cut loss, so instead of 2% gain that I was going for, I ended up losing 6% the next day. This threw a curveball at me. I decided I will bet on the market on big tech earnings. I decided since Microsoft and Netflix dropped despite amazing earnings, I will use the same logic. Of course, it backfired, I am now staring at a 5-7% loss across Microsoft, Amazon and Facebook. So the ultimate learning is, stick to your strategy than gambling. The