Uploaded April 2020 | Updated September 2026, 52 minutes ago
A lot of investors and traders are legitimately wondering whether the price recovery when it comes to let's say US stocks is genuinely legitimate or nothing more than a so-called "dead cat bounce" or DCB... which, as the name suggests, refers to a (relatively) short-term upward move which is followed by a continuation of the downtrend.
As such, this video has been dedicated to just that, the relatively broad topic of catching a falling knife. Once again, the name speaks for itself in that as tempting as it may be to try to time the bottom, catching a falling knife can be quite dangerous.
Therefore, wouldn't it make more sense to simply let the dust settle before deciding whether or not it is time to buy?
Time and time again, investors assume it's all back to normal if the price goes up after a dramatic crash, only to be disappointed upon realizing that it was nothing more than a dead cat bounce and once the dcb in question ran its course, the downtrend continued.
Whether you are investing or trading, common sense can and will get you far, with this video hopefully providing a much-needed dose of just that :)
A lot of investors and traders are legitimately wondering whether the price recovery when it comes to let's say US stocks is genuinely legitimate or nothing more than a so-called "dead cat bounce" or DCB... which, as the name suggests, refers to a (relatively) short-term upward move which is followed by a continuation of the downtrend.
As such, this video has been dedicated to just that, the relatively broad topic of catching a falling knife. Once again, the name speaks for itself in that as tempting as it may be to try to time the bottom, catching a falling knife can be quite dangerous.
Therefore, wouldn't it make more sense to simply let the dust settle before deciding whether or not it is time to buy?
Time and time again, investors assume it's all back to normal if the price goes up after a dramatic crash, only to be disappointed upon realizing that it was nothing more than a dead cat bounce and once the dcb in question ran its course, the downtrend continued.
Whether you are investing or trading, common sense can and will get you far, with this video hopefully providing a much-needed dose of just that :)
