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Wow share big drop
- Thread starter gummybear
- Start date
The term falling knife suggests that buying into a market with a lot of downward momentum can be extremely dangerous - just like trying to catch an actual falling knife. If timed perfectly, a trader that buys at the bottom of a downtrend can realize a significant profit, but the odds are that the timing will be off and there could be significant losses before any gains. As a result, the general consensus among traders is: Don't try to catch a falling knife.
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Read more: Falling Knife https://www.investopedia.com/terms/f/fallingknife.asp#ixzz5Tb0xyWLY
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