catch a falling knife

Verb

Meaning

(trading) To buy an instrument whose price is falling rapidly.
Buying that stock now would be catching a falling knife. Wait until you see capitulation.

(trading) To buy an instrument with the unconfirmed assumption that price will reverse.

Examples

Watch the grown ups all twirling with the clock throughout the day. Watch them spinning through the hours while the time hands tick away. They talk and grip the world, as they would catch a falling knife. Reality deceives them 'neath amusing games of life. Dawud Wharnsby

Buying a home wouldn't make much sense if house prices were likely to decline further; no one wants to catch a falling knife. Mark Zandi

Close letter words and terms