| || InvestHub.com's |
Finance Dictionary and Glossary of Investment Terms
risky trading practice of making trades similar to those of other successful investors, usually institutional investors.
An investment strategy where investors mimic the trades of well-known investors, whose purchases are usually large and often reported in the news.
A trading strategy in which an investor tries to duplicate the performance of a successful (and usually well-known) investor by copying their trades as soon as they are made public. This is a risky strategy, since there is a time delay between when the successful investor's trades occur and when they are made public, and because the strategy disregards overall portfolio considerations, risk tolerance, and other unique circumstances.