Buy Weakness

Using the long-held belief that you should buy low and sell high, you "buy weakness" when a security has reached a low level based on past history. You can either hold onto the stock and hopefully watch it rise, or if you are really confident...you could purchase a call option betting that it will surpass a certain price.

One way retail investors spot a weakness is by looking at trading channels that measure the stock performance over the long term. A moving average trend line can then be determined, and if the price goes below that line, it might be a good time to buy that weakness. But it might not.

The gist of this term is that, when great brands stumble and their stock shows weakness, it may be time to buy. Great brands are hard to kill.