[[Start here]] → [[Sources]] → Profit Warnings --- Stockopedia's Profit Warning Survival Guide[^1] is the best resource for understanding what to do when one of your stocks warns on profits. I directed the research project, with the able help of Alex Naamani and Tom Firth. It was based on the prolific daily commentary of Paul Scott. Here are some key learnings: - [[only hold the highest quality stocks after a profit warning]] - [[sell immediately on a profit warning]] - [[profit warnings almost come in threes]] - [[profit warnings lead to significant declines]] - [[profit warnings are anticipated by price declines]] - [[profit warnings bounce intraday proportionally to their decline]] I compiled this Twitter thread on the topic:  [^1]: Stockopedia.com [The Profit Warning Survival Guide](https://www.stockopedia.com/books/profit-warnings/)