You paid $10 a share for whatever.com but wussed out and only bought 1,000 shares when you really wanted 5,000. The stock then popped two bucks and now it's at $12. You think that in five years, it'll be at $50. So you buy another 1,000.
Then it pops another two bucks to $14. You buy another 1,000...eventually realizing that this hot stock ain't sagging back down to $10 any time soon. So you average UP your average cost of purchasing it. Lesson learned? She who hesitates is lost.
Related or Semi-related Video
Finance: What is Dead Cat Bounce?13 Views
Finance allah shmoop What is a dead cat bounce It
sounds like a dance move from the old west right
but it actually refers to a terrible situation when the
market plummets rebounds very slightly and then plummets again The
idea comes from the notion of dropping a cat off
of a high building It hits the cement dead bounces
a bit before then is a big wet thud Yeah
peeta no cats were harmed in the production of this
definition Thie market has fallen from five thousand twelve hundred
now it's at fourteen hundred and now it's back to
twelve hundred Yeah that uplift of two hundred points there
from twelve hundred fourteen hundred before it went back twelve
hundred which is the concrete that's the dead cat bounce
I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea
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