Whatever you do, don’t think that a big break in the stock is now a buying opportunity. Many investors get caught in this trap: A stock they own suddenly declines sharply. Believing that the marketplace must be wrong and that the stock is still a good performer, they decide it’s time to buy more. They don’t realize that the stock price is down because the big players know (or at least suspect) something is wrong and are getting out. When you see that happen in the price action, regardless of what the fundamentals are saying, it’s time to exit.
