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  • July 30, 2022
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Slump

A market situation that is marked with a modest decline in the price of an individual security or the market at large (the broader market). Trading slumps can imply a disorienting period in the aftermath of a big selloff. In such periods (similar to a sideways market) a trader would suffer much of small losses. Slumps may also be characterized by long stretches of decline or stagnant activity, where making gains would be quite hard, if not impossible.

In addition to financial losses, trading slumps are characterized by bad sentiment, fear, uncertainty, and a loss of confidence.


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