Before you rush to buy a stock that's down 15-20% after earnings, understand one important rule: The 3-Day Rule!
What is the 3-Day Rule, and why does it matter? Let me explain.
When a stock gaps down sharply after earnings or bad news, wait at least 3 trading days before considering buying.
Why? Large institutions managing millions of shares may need several sessions to reduce their positions. The initial gap down might be just the beginning of the selling pressure.
Day 1: An initial bounce could be driven by short covering and aggressive dip buyers rather than sustained institutional demand.
Days 2 and 3: Selling pressure may continue, and the stock could make new lows as investors reassess the news.
After Day 3: Look for signs that selling pressure is fading and price is beginning to stabilize.
Before buying, check:
- Selling volume is shrinking
- Price is holding above the recent low
- You understand why the stock dropped
- The fundamental thesis remains intact
Remember, three days don't guarantee a bottom. Some stocks need several weeks or even months to build a proper base before beginning another sustained uptrend.
If the business is fundamentally broken, the stock isn't necessarily on sale. It may simply be getting repriced.
The market doesn't reward you for catching the exact bottom. Let the selling pressure fade, let the stock build a base, and let the trend confirm itself.
Missing the bottom is far better than getting caught in a downtrend
$SOFI CEO Anthony Noto bought roughly $2.25 million worth of $SOFI stock this year.
His average purchase price across those buys is around $17.29/share.
$SOFI is trading around $17.04$ today.
And since those purchases, the business has only gotten stronger…
Q3 revenue: +44%
Adjusted EBITDA: +70%
EPS: +64%
Management also raised 2026 revenue guidance to $5.04B and now expects $0.90 EPS in 2027.
Noto was putting his own money into $SOFI around these levels.
Now the company is generating stronger revenue, stronger earnings and raising guidance.
That’s something I’m paying attention to.
The day you built a portfolio that could grow without requiring your constant attention was the day you bought back your future, not the day you retired.
This is long-term thinking.
Dangote Cement Q3 2026 Results
The management has stopped disclosing volume data. It appears they don't want y'all probing their volume and pricing dynamics.
Revenue growth remained double-digit in Q3 2026.
In Q2 2026, when revenue grew by 22% y/y, volume grew by 10% y/y, while average pricing increased by 11% y/y.
In Q1 2026, when revenue grew by 20% y/y, volume grew by 14% y/y, while average pricing grew by 6% y/y.
After the recent 10% price gain over two consecutive trading days, Dangote Cement currently trades at 17x, with an ROA of 23% and ROE of 55%. Strong.
#NGXQ32026Results_
As you build your Naira portfolio, don’t forget your USD portfolio. 🇳🇬🇺🇸
Both currencies matter.
Build wealth in Naira to take advantage of opportunities at home, and build wealth in dollars to diversify globally and protect your purchasing power.
Don’t build wealth in just one currency. Build a portfolio that gives you options in both.
Funny how the timeline went from nonstop investment talk before the Dangote Refinery IPO to almost dead silence after. Everybody was hyped during subscription, now nobody wants to discuss what comes next.
Let me say this plainly. This is not a meme coin or a quick flip. The real benefit of this refinery will not show up tomorrow or next year. We are talking a decade before the fundamentals truly mature, and the kind of generational flexing this investment can produce will not fully arrive for another 30 years from now.
Dangote himself may not even be alive to witness shareholders fully enjoying what this becomes. That is the scale of what people bought into. Long term industrial equity, not hype.
If you went in, understand what you actually hold. Patience is the whole strategy here.
Fun Fact: MTN Nigeria didn’t exactly choose to list on the NGX voluntarily. It was pushed to do so following regulatory pressure from the CBN.
Want to know the story behind one of the NGX’s biggest companies?
🎥 I broke it down in this short YouTube video: https://t.co/NrUfj9K088