Chasing The Market

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Dictionary Says

Definition of 'Chasing The Market'

Entering or exiting of a trend after the trend has already been well established. Investors are often unaware of the fact that they are chasing the market, which can dent the value of a portfolio. This type of investing is often seen as irrational as decisions are often based on emotion instead of careful analysis of the value of the investment.
Investopedia Says

Investopedia explains 'Chasing The Market'

Chasing the market refers to both the entering into highly priced positions after they have rapidly increased and become overvalued as well as the exiting of positions after they have rapidly decreased and become undervalued. During the internet bubble some investors entered the rapidly appreciating sector well after the trend had been established and lost considerable sums when the bubble bust.
Search results for

'Chasing The Market'

  • How do investors "chase the market"? It this a bad thing?

    http://www.investopedia.com/ask/answers/09/chase-the-market.asp
    ... overpriced. An investor who exits a position after the security has lost
    considerable value also is said to be chasing the market. Both ...

  • Chasing Google

    http://stocks.investopedia.com/stock-analysis/2010/Chasing-Google-YHOO-GOOG-AOL-MSFT-BIDU0727.aspx
    ... Chasing Google. ... through two basic means: attract users from competing search engine
    providers and increase the international internet market penetration rate. ...

  • 5 Things Every Real Estate Pro Knows

    http://www.investopedia.com/articles/pf/07/five-real-estate-tricks.asp
    ... Personal Finance, Real Estate. Those who consistently make money in real estate
    know the market. ... old pros use to get ahead of the trends instead of chasing them ...

  • Chasing Down Biotech Zombie Stocks

    http://www.investopedia.com/articles/stocks/07/biotech_zombies.asp
    ... The costs are massive to bring actual products to market and very few ever make ... Chasing
    Its Goals, Dragging Behind Now that the monster has been created and is ...

  • Forget The Stop, You've Got Options

    http://www.investopedia.com/articles/optioninvestor/08/options-stops.asp
    ... it does signify that the market is no longer moving in the direction of your original
    position, you can "leg out" of your position without chasing the market. ...

  • 11 Mistakes Inexperienced Landlords Make - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0909/11-Mistakes-Inexperienced-Landlords-Make.aspx
    ... their hand at real estate investing. (Find out how to stop chasing the
    market and start leading it. Check out 5 Things Every Real ...

  • January 6, 2011 Market Summary

    http://stocks.investopedia.com/stock-analysis/cotd/DIA20120106.aspx
    ... a possibility. That being said, for several months this market has punished
    the chasing of a breakout or breakdown. Nothing occurred ...

  • Mutual Fund Ratings: Are They Deceiving?

    http://www.investopedia.com/articles/mutualfund/09/mutual-fund-rating-systems.asp
    ... This component by itself is easy to follow and does not require in-depth knowledge
    of the market. However, "chasing performance" has led many investors into ...

  • Understanding Investor Behavior

    http://www.investopedia.com/articles/05/032905.asp?partner=aol-d
    ... Investors often make the mistake of chasing market action by investing in
    stocks or funds which garner the most attention. Research ...

  • How Interest Rates Affect The Stock Market

    http://www.investopedia.com/articles/06/interestaffectsmarket.asp
    ... But when it comes to the stock market and the impact of interest rates, the ... Inflation
    is caused by too much money chasing too few goods (or too much demand for ...

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