DEFINITION of 'Overstay'

The act of holding an investment for too long. It often occurs when traders attempt to time the market by identifying the end of a price trend and the beginning of a new one, but, due to greed and fear, tend to overstay their positions. This usually results in reduced gains or, worse, further losses.


Knowing when to sell or get out of an investment is just as important as knowing when to get in. However, timing the market correctly is a task that even professional investors and traders find difficult to accomplish on a consistent basis, so attempting market timing is not recommended for the average investor.

  1. Trend

    The general direction of a market or of the price of an asset. ...
  2. Market Timing

    1. The act of attempting to predict the future direction of the ...
  3. Buy And Hold

    A passive investment strategy in which an investor buys stocks ...
  4. Falling Knife

    A slang phrase for a security or industry in which the current ...
  5. Fallen Angel

    1. A bond that was once investment grade but has since been reduced ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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