Whipsaw

What it is:

A trader is said to be "whipsawed" when the price of a security suddenly moves in the opposite direction of a trade that he just placed.

How it works/Example:

For instance, if a trader buys shares of Apple at $250/share, and over the course of the day the price drops to $230, the trader has been whipsawed.

Why it matters:

This usually occurs in a volatile market when traders are subjected to high risk. Short-term traders can be whipsawed often, but long term traders are likely to see better results over a longer time horizon.

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Submitted by Anonymous on Thu, 06/06/2019 - 07:20

Whipsaw

What it is:

How it works/Example:

Why it matters:

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