[[Start here]] → [[What works in stocks?|what works]] → [[maintain your discipline|discipline]] → [[what to do on a profit warning|profit warnings]] → sell immediately --- In our study of 245 profit warnings, 18 months after the initial profit warning, there was still no price recovery on average. [^1] Prices did not bottom for 250 trading days after the initial profit warning - an entire year. They then began a slow recovery. The lesson here is simple: Sell on a profit warning - the opportunity cost is high. ![[sell immediately on a profit warning.png]] It's worth caveating that you should [[only hold the highest quality stocks after a profit warning]] - so there is a tiny amount of hope! [^1]: [[Stockopedia - The Profit Warning Survival Guide]]