Bullet Dodging

There are many times throughout the day when we manage to avoid harm (glass doors are pure evil, aren't they?), but in the finance world, bullet dodging refers to avoiding a big mistake when playing the stock market.

Let’s say you’ve had your eye on GetRichQuick, Inc. and put it on your buy list for when it goes down to $80. It’s been hovering at $85, then $84, then $86, and you think, “What the heck, I may as well buy it now.”

But just when you are about to pull the trigger, the company announces they did not meet their earnings goal, or their product is sending people to the ER. The stock plummets to $43 on its way to $35. Thankfully, you dodged a bullet by not buying it in the $80s.