Gap loss

Hi there! Have you ever played a game of hot potato? Imagine that there's a player who isn't paying attention and misses the potato when it gets passed to them. This is kind of like what happens with gap loss.

In the world of finance, gap loss is when an investor misses out on a good opportunity because they weren't paying attention or didn't act quickly enough. Just like in the game of hot potato, when someone isn't paying attention, they miss out on their chance to participate.

For example, let's say there's a company that's starting to do really well, and its stock price is going up. If an investor doesn't notice this and doesn't buy the stock when it's still relatively cheap, they miss out on the chance to make money when the price goes up even more.

This can happen for a lot of reasons – maybe the investor is too busy with other things or they don't have the right information to make a decision. But whatever the reason, it means that they lose out on a good opportunity.

So in short, gap loss is when an investor fails to take advantage of a good opportunity because they weren't paying attention or didn't act quickly enough. It's like missing out on a game of hot potato – if you're not paying attention, you might not get to play at all!