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falling knife |
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Falling Knife A stock whose price has fallen significantly in a short period of time. Notes: Don't try to catch a falling knife or you'll end up getting hurt!
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| For example, searching on the term stocks in the business category returned results including "Catch a falling knife," which means buying a stock as its price falls in the hope it'll rise again, only to have it continue to decline. For every invitation I extended to myself to average down, I ignored an equally facile warning about not attempting to catch a falling knife. The old investment proverb, "beware of catching a falling knife," may well apply. |
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