catch a falling knife

The phrase "catch a falling knife" is a metaphor used in finance to describe the risky act of buying assets during a sharp decline.

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Definition

C1Trading

(informal)To buy an asset that is rapidly decreasing in value, often with the hope it will soon rebound.

Example

  • Many investors got burned trying to catch a falling knife during the market crash.

C1Finance

(cautionary)To engage in a risky investment by purchasing a declining asset, potentially leading to significant losses.

Example

  • Advisors often warn clients against trying to catch a falling knife during volatile markets.

Similar

Terms that have similar or relatively close meanings to "catch a falling knife":

knife restknife fightcut like a knifeknife upcatch stepcatch it