| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
Coattail investing
Definition 1.
risky trading practice of making trades similar to those of other successful investors, usually institutional investors.
|
Definition 2.
An investment strategy where investors mimic the trades of well-known investors, whose purchases are usually large and often reported in the news.
|
Definition 3.
A trading strategy in which an investor tries to duplicate the performance of a successful (and usually well-known) investor by copying their trades as soon as they are made public. This is a risky strategy, since there is a time delay between when the successful investor's trades occur and when they are made public, and because the strategy disregards overall portfolio considerations, risk tolerance, and other unique circumstances.
|
|
|