catch a falling knife
Grab plummeting danger
To catch a falling knife is to buy an asset whose price is dropping sharply, hoping to grab it at its lowest point.
The metaphor warns of danger—just as catching an actual falling knife risks injury, buying during a steep decline risks further losses.
Financial advisors often caution against trying to time the bottom: I thought the stock was cheap at $40, but I was catching a falling knife—it dropped to $15.
- bottom-fishingBuying at depressed prices
- riskyInvolving possible harm
- speculationUnproven theorizing or risky investment
- hazardousLikely to cause injury
- risk-takingAccepting possible harm
high risk high reward · unwise · precipitous · rash · cutting losses · dead cat bounce · volatility · calculated risk · decline · bear market · perilous · daredevilry · technical analysis · margin calls · short selling · unpredictability · risk tolerance · playing with fire