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Falling knife

slang

Also: catching a falling knife

1 min readupdated 2026-06-11✏️ Suggest an edit🕑 History

Catching a falling knife — buying an asset while its price is in free fall, hoping to nail the exact bottom. The metaphor is literal: grab a falling knife and you get cut — the price usually keeps falling after your "bottom".

The sober alternative: wait for the fall to stop and a base to form, or DCA in small portions instead of one heroic catch.

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