A sharp rise isn’t necessarily a good thing, and a sharp drop may actually be an opportunity to make money! In the stock market, nothing is absolute:

1. A sharp rise in a stock isn’t necessarily a good thing
It could be due to better-than-expected earnings, short-term speculation, or even major players using positive news to unload their positions.

2. A sharp drop in a stock isn’t necessarily a bad thing
It could be caused by deteriorating fundamentals, market panic, or short-term profit-taking.

3. A good company isn’t necessarily a good stock
No matter how excellent the company is, buying at too high a price can still result in losses.

4. Positive news doesn’t necessarily push the stock price higher
If the market has already priced it in, the stock may fall after the news is announced.

Don’t view things in black and white, and don’t cling rigidly to a single belief.

When prices rise, think about why they might fall. When prices fall, analyze whether there are conditions for a reversal. Before buying, consider what circumstances would prove you wrong. While holding a position, continue to validate your original thesis.