How I Saved Myself: -25% MSFT, -40% HOOD, -55% ADBE, -35% NFLX — with this Simple Rule

By Harsh Shah · Updated 2026-10-18

Disclaimer: This content is for educational purposes only and should not be considered financial advice.

Have you ever bought a stock…
only to watch it go lower right after?

Not because your idea was bad.
Not because the company was weak.

But because you were early.

I’ve done that more times than I can count.

And recently — I could have done it again in:

MSFT
HOOD
ADBE
NFLX

All four looked “cheap.”
All four looked like “opportunity.”

But instead of jumping in…

👉 I waited.

And that decision saved me from:

MSFT → 25% down move
HOOD → 40% down move
ADBE → 55% down move
NFLX → 35% down move

Lets dive deeper!

The Problem Isn’t Picking Stocks

Most traders think their issue is stock selection.

It’s not.

You already know how to find:

Good companies
Strong levels
Clean charts

The real problem is:

👉 You’re entering during weak momentum.

And weak momentum is where trades go to die.

What Is EMA (Quickly, No Complexity)

EMA = Exponential Moving Average

Think of it like this:

👉 It’s the average price, but it gives more importance to recent candles.

So it reacts faster than a normal average.

8 EMA → very fast (short-term behavior)
21 EMA → slower (overall trend)

Now here’s the key:
👉 You’re not using EMAs as support or resistance.
👉 You’re using them to understand who is in control.

8 above 21 → buyers in control
8 below 21 → sellers in control

That’s it.

MSFT — The “It Can’t Go Lower” Trap

Microsoft looked stable.

Strong company.
Clean levels.
Everyone confident.

MSFT — The “It Can’t Go Lower” Trap — How I Saved Myself: -25% MSFT, -40% HOOD, -55% ADBE, -35% NFLX — with this Simple Rule — Weekly Chart

But the chart said something else:

8 EMA below 21
No momentum
Weak structure

👉 That’s not strength. That’s distribution.

I did nothing.

And it dropped ~25%.

ADBE — The Falling Knife

This one was everywhere.

“High quality stock.”
“Big discount.”

ADBE — The Falling Knife — How I Saved Myself: -25% MSFT, -40% HOOD, -55% ADBE, -35% NFLX — with this Simple Rule — Weekly Chart

But price doesn’t care about opinions.

8 EMA below 21
Strong downtrend
No signs of buyers

👉 That’s a falling knife.

I avoided it.

Similar setups for:
Netflix and Robinhood!

Final Thoughts

These weren’t trades I won.

These were losses I avoided.

Same stocks everyone was watching.
Same charts everyone saw.

But one difference:
👉 I didn’t act during weakness.

You don’t need to catch bottoms.
You don’t need to predict reversals.

You just need to ask:
Is momentum actually on my side?

If yes → participate.
If no → wait.

Sometimes the best trades aren’t the ones you take.

They’re the ones you don’t take at all.