WHIPSAW English meaning
They wait for the whipsaw to happen and then jump into the stock after the sharp drop to pick up the move back up. A trader gets whipsawed if they buy a security immediately before its price drops or sell a security right before its price jumps, leading to losses. For example, when an investor goes long on a stock, the expectation is that the price will increase in value over time. However, there are many occasions when an investor purchases shares of a company at the top of a market rally. The investor buys a stock at its peak assuming that it will […]