A big rally isn’t always a good thing, and a big drop might just be your chance to strike it rich! In the stock market, nothing is absolute: 1. A stock rallying hard isn’t always good It could be due to better-than-expected performance, short-term speculative funds, or even the big players using good news to offload shares. 2. A stock dropping hard isn’t always bad It could be due to deteriorating fundamentals, market panic, or just short-term profit-taking. 3. A great company isn’t always a great stock No matter how good the company is, if you buy at too high a price, you could still lose money. 4. Good news doesn’t always push stock prices up If the market has already priced it in, the stock might actually drop after the news is announced. Don’t see things in black and white, and don’t get stuck in rigid thinking. When prices go up, think about why they might fall. When prices drop, analyze if there’s a chance for a reversal. Before buying, consider under what conditions you might be wrong. While holding, keep validating your original logic.