Weak Longs

DEFINITION of 'Weak Longs'

Refers to the group of investors that holds a long position and is quick to exit that position at the first sign of weakness. This group of investors is generally looking to capture the potential upside in a given security, but is not willing to take much loss. These investors will quickly close their positions when a trade does not work in their favor.

BREAKING DOWN 'Weak Longs'

Weak longs are regarded as the opposite of true long-term investors because they are not willing to hold their positions through all types of fluctuations. Weak longs are generally short-term traders who are looking for a quick profit. When the situation is not looking good, they will close their positions and go looking for opportunities elsewhere.

RELATED TERMS
  1. Position Trader

    A type of stock trader who holds a position for the long term ...
  2. Close Position

    Executing a security transaction that is the exact opposite of ...
  3. Weak Shorts

    Traders or investors who hold a short position in a stock or ...
  4. Net Long

    A condition in which an investor has more long positions than ...
  5. Sell

    The process of liquidating an asset in exchange for cash. The ...
  6. Net Short

    A condition in which an investor has more short positions than ...
Related Articles
  1. Investing Basics

    The Roles Of Traders And Investors In The Marketplace

    Discover how these two groups work together to keep the market functioning properly.
  2. Stock Analysis

    3 Early Warning Signs You Can Use to Exit Positions

    Use these three early warning signs to take fast exits on open positions.
  3. Investing

    What does Long Position Mean?

    In the investing world, a long position refers to having a positive investment balance in a stock, bond, commodity, etc. This is done by simply buying and owning the investment. For example, ...
  4. Active Trading Fundamentals

    How To Start Trading: Trading Styles

    While investments can be held for years or decades, the four primary trading styles can be held from months to years, or only for minutes or seconds. These styles are: position trading, swing ...
  5. Options & Futures

    Increase Your Profits With Soft Or Mental Stops

    A soft stop provides a trader with added flexibility, allowing him to react to ongoing changes in the market.
  6. Trading Strategies

    The 10 Worst Mistakes Beginner Traders Make

    Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors, which can result in costly mistakes.
  7. Trading Strategies

    Day Trading: Top Scenarios To Take Profits

    Three ways to take profits while day trading, based on price movement and what the asset is doing that day.
  8. Professionals

    Long Stock Long Puts / Married Puts

    An investor who is long stock and wishes to protect the position from downside risk will receive the most protection by purchasing a protective put. By purchasing the put, the investor has locked ...
  9. Trading Strategies

    Must-Know Simple & Effective Exit Trading Strategies

    An effective exit strategy builds confidence, trade management skills and profitability.
  10. Term

    What Are Quick Assets?

    A company’s quick assets can be easily converted into cash.
RELATED FAQS
  1. What's the difference between a long and short position in the market?

    Understand long and short positions for stocks and option contracts; combine long and short positions for added leverage ... Read Answer >>
  2. How do I close a long position in forex?

    Learn the different ways that traders close out existing long positions in the forex market, depending on whether their brokers ... Read Answer >>
  3. Is going long considered to be less risky than going short?

    Learn what the difference between going long and going short, why it is riskier to be short than long, and the risk associated ... Read Answer >>
  4. When short selling, how long should you hold on to a short?

    Explore the reasons for short selling and the various factors that influence how long an investor may wish to maintain a ... Read Answer >>
  5. With what kinds of securities does it make the most sense to enter a long position?

    Find out which securities provide the best opportunities for entering long positions, including how this strategy is used ... Read Answer >>
  6. What are common trading strategies used in a bull market?

    Discover four commonly used trading strategies by investors and analysts to make profits from a prolonged bull market, including ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center