Forehead-Slapping Stock Blunders (1 of 7) Forehead-Slapping Stock Blunders (3 of 7)

Forehead-Slapping Stock Blunders (2 of 7)

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Catching the Falling Knife: Investors love to buy companies on the cheap, but far too often, investors buy in before all of the bad news is out in the public domain, and/or before the stock stops its free fall. Remember, new lows in a company's share price often beget further new lows as investors see the shares dropping, become disheartened and then sell their shares. Waiting until the selling pressure has subsided is almost always your best bet to avoid getting cut on a falling knife stock.
Source: http://www.investopedia.com/articles/basics/08/blunders.asp

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