✦ NIGHT FLIGHT | CONTROL TOWER Q&A

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● Level 3 · Beginner

Should I Sell Immediately After a Sharp Fall?

A sudden drop does not always mean you must sell immediately. But continuing to hold without checking anything is also dangerous.

First determine whether the whole market is falling or only this company, and whether new information—earnings, a downward revision, an accident, or another event—has appeared.

Then ask: “Does the reason I bought this stock still remain?”

Conclusion: After a sharp fall, the first action is not automatically to sell. The first action is to identify the cause.

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