Was that your stock blowing up? Here are some rules for handling sudden price plunges

The stock you bought dropped 30% yesterday because it failed to meet Wall Street's exacting expectations. Ouch--you've just been scalded by what we call an earnings blow-up. Now what? Do you lie there inert, screaming "Where's the rest of my stock?" Nah. In the trenches of capitalism where I toil, one of these high-explosive blow-ups hits me monthly, obliterating any hope of a quick profit, or perhaps producing a staggering unrealized loss. IBM, Xerox, Unisys and Lexmark have all detonated recently. First, take heart. You aren't the only one dumb enough to bet on a great company during a period of...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!