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📉 Catching knives in trading – why is it dangerous? 🔪“Catching the knife” is buying an asset that is falling sharply, hoping that it will now turn around and go up. 🚨 Why is this risky? 1️⃣ The fall may continue - the asset falls even lower, and instead of profit you get -50% or liquidation. 2️⃣ Rebounds are short-lived – even if the price has jumped a little, it can then fall even more.

📉 Catching knives in trading – why is it dangerous? 🔪

“Catching the knife” is buying an asset that is falling sharply, hoping that it will now turn around and go up.

🚨 Why is this risky?

1️⃣ The fall may continue - the asset falls even lower, and instead of profit you get -50% or liquidation.

2️⃣ Rebounds are short-lived – even if the price has jumped a little, it can then fall even more.
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