One Night Stand Investment

AAA

DEFINITION of 'One Night Stand Investment'

A purchased security that was intended for a long-term investment, but is instead sold the next day. One night stand investments are often sold urgently on the trading day after purchase, because the investor regrets buying the shares to such a degree that fear and panic begin setting in. This can even lead to immediate, short-term losses. A one-night stand investment is typical of an indecisive investor, and is related to the field of behavioral finance.

INVESTOPEDIA EXPLAINS 'One Night Stand Investment'

Much can change overnight in a company and an industry. An investor who researches an investment and buys one day, feeling that the company and its future are strong, may be panic-stricken and ready to sell the next day when unexpected news threatens his or her perceptions of the security of his or her long-term investment. The incidents instigating the sudden sale can include many things, such as the company's profits missing their target, industry shifts, acquisitions and regulatory changes.

RELATED TERMS
  1. Coattail Investing

    An investment strategy in which investors mimic the trades of ...
  2. Behavioral Finance

    A field of finance that proposes psychology-based theories to ...
  3. Bo Derek

    A slang term used to describe a perfect stock or investment. ...
  4. Nervous Nellie

    An investor who isn't comfortable with investing and the risks ...
  5. Panic Selling

    Wide-scale selling of an investment, causing a sharp decline ...
  6. Buy And Hold

    A passive investment strategy in which an investor buys stocks ...
Related Articles
  1. Active Trading Fundamentals

    4 Psychological Traps That Are Killing ...

  2. Active Trading Fundamentals

    An Introduction To Consensus Indicators ...

  3. Active Trading Fundamentals

    An Introduction To Behavioral Finance

  4. Investing

    Tips For Investors In Volatile Markets

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center