catching a falling knife

Buying during plunges

Catching a falling knife describes buying an asset whose price is dropping sharply, hoping to grab it at a bargain before it rebounds.

The image captures the danger: you might time it perfectly, or you might get cut badly.

Financial advisors generally warn against it: Don't try to catch a falling knife—wait for the price to stabilize.

The phrase emphasizes that what looks like a buying opportunity may just be the beginning of a longer decline.

Opposites
market timing strategy

catching a falling knifemissing the boat

Losing a chance

risk approach

catching a falling knifeplaying it safe

Avoiding unnecessary risk

capital preservation · dollar-cost averaging · slow and steady · standing aside

price trend direction

catching a falling knifegoing with the flow

Accepting situations without resistance

jumping on the bandwagon

Family

catching, catches, catcher, catchy, falling, fallen, faller

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Negative · Rated G