Down 5, 6, 7, 8%?!?!?!!?! Argghhh!!! |
When that happens it is understandable to feel like panicking and then selling your stock as soon as possible. Instead you should take a hard look at the numbers, and most importantly read the news associated with your stock and find the reason behind the dramatic price drop. Most times the stock market over reacts to both good and bad news. Usually stocks that get slaughtered one day will float back up to a higher price after they get sold off. This is true for quality stocks especially and that is why I try my best to only trade quality stocks.
Because I do my homework, I trade quality stocks, and I didn't panic I was able to have enough conviction to stay in my stock after it went down. I realized that it was an over reaction and now it has come back 6.38%. I am hoping that because it is an over reaction that it will come all the way back and possibly even end up giving me a small gain by the end of next week.
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