Instead of waiting for confirmation of reversal, “buying on weakness” means to go ahead and buy a long position (or cover a short position) while a stock is in the middle of a downtrend, in the hopes that it will reverse soon and the preemptive move will allow you to capture the entire upside.
Upswings can happen very quickly, and failure to prepare for them can cost investors a lot of money. Buying on weakness is intended to put the investor in a position for maximum gains, as well as preventing losses on a short position. This is one part of the “buy on weakness / sell on strength” mantra, which is essentially the same thing as “buy low / sell high”.
What does “Buy to Close” Mean?
What does “Buy to Open” Mean?
What Does 'Buy to Cover' Mean?
There are many ETFs on the market and more popping up all the time. Currently, there are over 900 ETFs available on...
You may hear differences about the amount of life insurance you need. One is take your annual income and multiply it by 10
The MSCI World is perhaps the most well regarded index for global stocks. The index is maintained by Morgan Stanley
Form 5405 is the filing for those who sell their home or see it destroyed within 36 months of receiving the first...
Lifetime income annuities provide a guaranteed payout over the life of the annuitant
The Rising Wedge pattern forms when prices seem to be spiraling upward, and two upward sloping trend lines are created
When the momentum indicator crosses above the zero line it could be an indication that the security has upward momentum and could chart a higher course
Federal Credit Unions are essentially banks that are owned by their clients instead of publicly traded or what-have-you
A convertible bond, also known as convertible debt, is debt that can be converted to equity (in the form of common stock)
The barbell strategy divides a sum, for instance $10,000, equally among bonds with short durations and bonds with...