Odd Lot Theory
DEFINITION of 'Odd Lot Theory'
A technical analysis theory/indicator based on the assumption that the small individual investor is always wrong. Therefore, if odd lot sales are up - that is small investors are selling stock - it is probably a good time to buy.
BREAKING DOWN 'Odd Lot Theory'
This approach assumes small investors have a low risk tolerance and tend not to hold a stock for the long-term.