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

comments powered by Disqus
Hot Definitions
  1. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  2. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  3. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  4. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  5. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  6. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
Trading Center