You don't catch a falling knife, but you can pick it up when it's on the ground.
The temptation to buy stocks that are falling sharply can be appealing, especially when a company has an attractive dividend yield. However, it is crucial to understand that depreciating stocks can stagnate for months or even years before recovering, and some never recover to their previous levels.
You don't catch a falling knife, but you can pick it up when it's on the ground. Read More »