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.
- playing with fireEngaging in reckless behavior
- knife jugglingTossing and catching blades
- bear marketProlonged securities decline
- skating on thin iceTaking foolish risks
- averaging downBuying more to lower basis
bull trap · market volatility · dead cat bounce · black swan event · jumping the gun · short selling · opening Pandora's box · risk assessment · capitulation · chasing losses · diversification · bottom fishing · blood in the streets · margin call · rolling the dice · high risk high reward · value investing · risk tolerance
- Wall Streetstock market, bond market, stocks, shares, Wall Street
catching a falling knifeplaying it safe
Avoiding unnecessary risk
capital preservation · dollar-cost averaging · slow and steady · standing aside
catching a falling knifegoing with the flow
Accepting situations without resistance