Timeline
- 20280430 - Bought into position at 162 -
65 shares
- 20180430
- 20180501 - Doubled down at 164 -
400 shares
- 20180501
- 20180502 - tripled down at 168
200 shares
- 20180502 - after hours
shares drop to USD156 from USD170
- miss target revenue by USD0.2billion
- total loss in market cap - USD3billion
- percentage loss of market cap % - 10%
lessons learned
- Beware of greed - Trading with the expectation of good news upon good news is asking for trouble
Don't make bets on the unknowns
- Don't chase after momentum
- stick to [strategy of loss aversion and reversion to mean](http://garyteh.com/2018/04/trading-strategy-capitalizing-on-loss-aversion/)
market over reacts with missed earnings
- trade on the position after
company missed earnings
- company's revenue and earnings grew substantially YoY
- Don't double down on a bad decision
only double down if the fundamentals are strong and Wall street temporarily miss priced
Moving forward
- To study crowd behavior of the following earnings missing episodes
Positive examples - fundamentals were strong
Spotify - 20180502
- [Netflix - 20171017](http://garyteh.com/2018/05/netflix-earnings-miss-20171017/)
- Negative examples - fundamentals were weak
Snap - 20180501