| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
whipsaw
Definition 1.
To lose money in a volatile market by buying before rapid drops and selling before rapid rises.
|
Definition 2.
An investment where the price goes the opposite direction from that which was anticipated right after the transaction is made. For example, an investment is made based on a buy signal generated by a technical indicator such as the 200-day moving average and then shortly thereafter, the price moves in the opposite direction giving a sell signal, frequently with a loss. Whipsaws can substantially increase your commissions for stocks and the fund manager may prohibit excessive mutual fund switching.
|
Definition 3.
A condition where an investor's security transaction is quickly followed by an opposite reaction. Sometimes referred to as "being whipped".
|
|
|