Cash Trigger

An immediate investment action executed by a wise or nervous investor, and perpetuated by the sudden, dramatic increase or decrease of a security’s price.

The price of a security moves and the investor “pulls the trigger” by trading, selling, or buying a security or derivative.

Example. You bought Google 10 years ago on the cheap for $300 per share. While your investment has been steadily growing (good for you), GOOG suddenly spikes to $1,800 per share on news that their parent company, Alphabet, has just announced its purchase of the startup company Soup.

This immense price appreciation, and the fact that your friends would call you a blooming idiot if you didn’t take advantage of this profit, triggers you to sell your position and realize a really big gain. Just don’t spend it all in one place, and don’t forget to invite us to the celebratory happy hour.