Jason Alan Jankovsky – Catch a Falling Knife

One of the oldest (and most outdated) trading maxims is: “Don’t Try to Catch a Falling Knife” The idea is that when a market is dropping hard and fast it is better to wait before attempting to buy it; the metaphor conjures images of a very messy outcome doing a lot of needless damage to a trader physically-if not to his equity. In my experience-the reason most analysts and educators suggest to YOU the developing trader “don’t try to catch a falling knife” is simply because they personally don’t know how to do it.

Trading involves substantial risk of loss and is not suitable for all individuals. Past Performance is not indicative of future results.