Using DynaLogic to Pocket Gains - NFLX Case Study

If you were an opportunistic investor in Netflix, DynaLogic’s “Sell” signals could have helped you pocket a bundle by winding down some of your position, locking in gains.

Netflix (NFLX) is one of the most popular, yet most volatile of the major tech stocks. If you were an opportunistic investor in Netflix, DynaLogic’s “Sell” signals could have helped you pocket  a bundle by winding down some of your position, locking in gains. 

How Does DynaLogic Work?

Once you subscribe, DynaLogic sends out daily Buy/Sell signals that suggest trades to benefit from general market sentiment. In other words, if a stock’s price is rising, DynaLogic will prompt you to sell some of it once it reaches a predetermined price.. 

With this system, we help investors take money off the table when a stock’s price is up. Or, we help you sell high.

You can learn more about how DynaLogic works here.

Let’s take a look at how exactly DynaLogic’s Sell signals could have helped you take money off the table at the right time by using real historical data from NFLX.

Netflix Trade Example

This example uses real historical price data to show you how DynaLogic could’ve helped Netflix investors make more money. The Sell signals below are signals that DynaLogic actually sent out to thousands of subscribers based on NFLX’s actual price movements, they are not hypothetical and they do not attempt to predict future prices.

Here’s the sequence of events:

On October 11th, NFLX declined $15.69 to close at $214.29.

On October 12th, before the market opened, DynaLogic issued a Buy signal due to this decline in price. Subscribers who owned or were interested in owning the stock were alerted to buy NFLX at this lower point.

No one knew at the time, but $214 would end up being Netflix’s 3-month low and set the table for a significant rebound….

Let's say you invested just $10,000 and bought 46 shares @ $214. 

On October 17th, DynaLogic published a Sell signal to sell some NFLX at $245.10 to all of its subscribers. So let’s assume you followed the Sell signal and you sold 10% of your initial 46 share investment. You pocketed a small gain. 

The next day, earnings were released and while no one knew it at the time, Netflix crushed the earnings estimates..

Now, absent a rules-based plan to sell, your emotions would have kicked in and you would be upset that you sold before the additional stock gain. 

But DynaLogic is there to help you take some of your money off the table to lock in the unrealized gains that you’ve already earned, but are still left to market risk. This way, you are protecting your gains in case the stock corrects rapidly.

So what happened next?

Well, while no one knew it would happen, the stock continued to soar and DynaLogic continued to publish Sell signals.

• On October 19th, DynaLogic published a Sell signal, prompting you to sell and, let's say you’re starting to learn to be a better, less emotional emotional trader, so you sold an additional 15% of your NFLX position at $272.38.

• On October 27th, DynaLogic published yet another Sell signal, prompting you to sell and you sold an additional 20% of your NFLX position at $298.62.

At this point, you would still own 28 shares of NFLX valued at $8685 as of November 15, 2022. But, you would also have realized gains of $4920 and after-tax gains of $3825 (assuming 40% short-term capital gains tax.)

Your total return? 25.1% after paying the short-term capital gains tax. Not bad at all for less than a month!

Final Thoughts

Now, did you make the absolute most money possible on this trade? No one knows because we don't know where the stock price will go! Of course, you could have just let it all ride and see what happens. 

If you owned NFLX in 2021, you surely wish you had sold some as the price was rising. You might find that NFLX goes back to $600 a share or goes the way of Blockbuster and finds its way to $0. What you do know is if you followed the DynaLogic sell signals, you put money in your pocket and STILL own the stock for the future! 

NO ONE knows what will happen in the future but as a subscriber, you can be assured DynaLogic will be there every step along the way for your next big winner.  

Real investing isn’t about leaving all your money and unrealized gains on the table trying to win big – that's gambling. Investing is about not missing opportunities to capture some of the gains you have. Unrealized gains are not real money until you sell.  DynaLogic helps investors overcome emotion by telling them when to start taking money off the table WHILE they’re winning.

Be sure to subscribe to “Risk-Off” for our daily Buy & Sell signals alerts and be alerted of new articles when they are posted.  Alternatively, please follow us on Twitter to get more updates.  

Note: DynaLogic provides to subscribers relevant and real-time market movement informationon a host of equity securities. Signals (sell or buy) are based solely on mathematical changes in the price of a security. No other methodology is used.

DynaLogic is not a registered investment advisor, and it makes no representation orrecommendation concerning the purchase or sale of any security investment product; DynaLogic provides no advice or recommendation on whether a subscriber should or should not act on any signal a subscriber receives, and it has no knowledge whether a subscriber, in fact, acts on a signal or any signal; DynaLogic maintains no portfolio account or other investment information on any subscriber.