Bloodletting
 |
Definition of 'Bloodletting'A period marked by severe investing losses. Bloodletting may occur during a bear market, in which the value of securities in many sectors may decline rapidly and heavily.It is named after an ancient medical practice in which doctors would use leaches or cuts to drain some of a patient's blood (one of the four humors). The premise being that it was "healthy" to balance the humors if feeling ill. |
 |
Investopedia explains 'Bloodletting'Investors facing a bear market have the option of riding out the downturn and holding onto their investments, or selling their investments in order to mitigate losses. A sell off of a particular security may result in a further decline in its value, as there are more sellers than buyers available in the market. An investor who thinks that the market will improve, may take advantage of this situation by buying up bargain stocks. |
Related Definitions
Articles Of Interest
-
An Introduction To Behavioral Finance
Curious about how emotions and biases affect the market? Find some useful insight here. -
Bloodletting And Knights: Medieval Investment Terms
From bloodletting to ye olde black knights, things on Wall Street are getting downright medieval! -
Recession: What Does It Mean To Investors?
Understanding the business cycle and your own investment style can help you cope with an economic decline. -
Market Cycles: The Key To Maximum Returns
You need to understand the various phases of the market cycle to avoid bubbles and make the best investments. -
Limiting Losses
It is impossible to avoid them completely, but there is a systematic method you can use to control them. -
The Greatest Market Crashes
From a tulip craze to a dotcom bubble, read the cautionary tales of the stock market's greatest disasters. -
Profiting In Bear And Bull Markets
There are many ways to profit in both bear and bull markets. The key to success is using the tools for each market to their full advantage. -
How To Adjust Your Portfolio In A Bear Or Bull Market
While investors shouldn’t feel compelled to change their portfolios radically overnight in reaction to the market's daily moves, small adjustments in the face of a bull or bear market could be ... -
Triple Screen Trading System - Part 4
How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here. -
Bull Vs. Bear - Apple Is On Its Way Down
All good things come to an end.
Free Annual Reports