Some people say «do not
try catching the falling knife...» others say it is a great opportunity to buy Continue reading →
Not exact matches
Trying to time any market is never smart and
catching a
falling knife is almost always going to turn out to be a painful experience.
«Rather than
try to
catch a
falling knife, we would rather wait for signs of stabilization.»
However, the stock remains a
falling knife and Cramer said he's not yet willing to
try and
catch it.
Again, with trend reversal setups, it is crucial to first wait for an extended base to develop at the lows, in order to ensure the ETF has actually found a significant bottom, rather than
trying to
catch a
falling knife:
But there will plenty of greatest fools who will
try to
catch falling knives...
First is where the nickname
falling knife comes from... as in, have you ever
tried to
catch a
falling knife?
And this point dovetails with the other point as far as since we don't pretend to know the precise timing of when bubbles kind of unwind or when the busts will finally reach a bottom, the idea is that we can actually be in the right quartile of activity, in other words I never
try to
catch the very top of a bubble, I don't
try to ride things to the very end, and similarly I don't mind
catching falling knifes.
Just as it is dangerous to
try and
catch a
knife falling to the floor, it is risky to buy a stock selling - off.
The one bit of friendly advice I might offer is don't be quick to
try to
catch a
falling knife here.
... is like
trying to
catch a
falling knife.
But it's never good trading advice to
try to
catch a
falling knife.
«Some walking wounded bottom pickers continue to
try and
catch a
falling knife,» said John Macaluso, an analyst at Tyche Capital Advisors.
This bond market selloff roiling all income - focused securities may very well continue for a while, and I don't recommend
trying to
catch the proverbial
falling knife by calling an exact bottom in REIT shares.
The 2015 rebalance for commodity indices may be remembered as the one
trying to
catch a
falling knife.
Buying a
falling stock can therefore have the same effect as
trying to
catch a
falling knife — it is likely that you will get hurt!
«Whenever the debt market collapses, for example, most people say, «We're not going to
try to
catch a
falling knife; it's too dangerous.»
This is fancier way of repeating the old trader's maxim to never
try and
catch a
falling knife.
So as a value investor, you're: a) buying a stock you think is cheap, but which could collapse in mere days, if bad news hits / sentiment turns and finally / suddenly everybody else notices the company's poor financials & bails out indiscriminately, or b) already
trying to
catch a
falling knife!?
Too many
try to
catch falling knives by buying
fallen angels is all too common of an approach for stocks to trade.
[People tend to forget how long commodity cycles actually last, so they keep
trying to
catch a
falling knife, and / or pick a bottom... but the best time to buy only comes when people finally & completely abandon the sector].
Don't
try to
catch a
falling knife.
-- I looked at Supervalu Inc. (SVU: US) recently, a (perpetual)
falling knife too many (value) investors felt compelled to
try catch.
Tweet Imagine you throw a
knife in the air to impress people around you and you
try to
catch it as it rapidly
falls.
However, we believe that we shouldn't
try to
catch a
falling knife.