NF-Q-10-003-7-en.html
● Level 7 · AdvancedShould I Sell Immediately After a Sharp Fall?
Separate a decline in price from a decline in business value. Recheck the investment thesis, loss tolerance, liquidity, time horizon and position size.
Review future earnings, balance-sheet safety, competitive advantage, expectations already priced in, margin-trading deadlines, and your ability to withstand a further decline.
Consider cutting the position if the thesis has failed, the loss exceeds your limit, or financial stability has deteriorated. Holding may remain an option if the thesis and finances are intact and the position size is appropriate. Never add simply because the price is lower.
Conclusion: A flight plan that survives turbulence matters more than an ability to predict the exact bottom.