Beating The Gun

AAA

DEFINITION of 'Beating The Gun'

A slang phrase used when an investor purchases or sells a security at a beneficial price by executing a trade before the market can respond to new information. Beating the gun denotes an investor's ability to time the market and react more quickly than other investors.

INVESTOPEDIA EXPLAINS 'Beating The Gun'

Experienced or professional investors try to beat the gun to earn extra return on their investments. Beating the gun requires that an investor act on information before every other investor, which is a difficult accomplishment for casual traders.

RELATED TERMS
  1. Away From The Market

    An expression that is used when the bid on a limit order is lower ...
  2. In And Out

    A trading strategy in which shares of a single security are bought ...
  3. Market Timing

    1. The act of attempting to predict the future direction of the ...
  4. Bottom-Up Investing

    An investment approach that de-emphasizes the significance of ...
  5. Chasing The Market

    Entering or exiting of a trend after the trend has already been ...
  6. Acquisition

    A corporate action in which a company buys most, if not all, ...
Related Articles
  1. Achieving Better Returns In Your Portfolio
    Bonds & Fixed Income

    Achieving Better Returns In Your Portfolio

  2. The Ups And Downs Of Investing In Cyclical ...
    Investing

    The Ups And Downs Of Investing In Cyclical ...

  3. Trading Is Timing
    Forex Education

    Trading Is Timing

  4. Market Cycles: The Key To Maximum Returns
    Active Trading

    Market Cycles: The Key To Maximum Returns

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center