All-Time Low

What Is An All-Time Low?

An All-Time Low (ATL), sometimes known as a record low, is the lowest price or value that a financial instrument has ever attained since it was first introduced. Yearly, monthly, weekly, and daily all-time lows are all possible.

Deeper Definition

High volume sales may be triggered by all-time lows, driving prices further lower. As a result, many traders pay close attention to market all-time lows. For a publicly listed corporation, a new low is always terrible news. When a company’s stock price falls to new lows, it usually takes a long time for it to recover or bounce.

Most investors consider all-time lows to be signals of instability and avoid purchasing, while some investors regard them as chances to purchase low and save money. The investor’s purpose is clearly to buy low and sell high. Because many penny stocks are rife with fraud, they tend to hit new highs on a regular basis.

The all-time low is also experienced in cryptocurrency. All-time lows are a sign of a bearish trend, and they generally lead to further price reductions.

This is because many traders panic when they learn that Bitcoin has hit a new low and begin selling the coins for cash, USDT, or better-performing currencies.

Many cryptocurrency dealers keep a careful eye on ATLs and exploit the low price to make judgments.

Buying low and selling high is an investment strategy that seeks to profit from the market’s bias for overshooting on both the downside and upside. It is challenging to create and execute systematically, despite its simplicity. A slang term describing a method that takes advantage of low cryptocurrency pricing to purchase coins for future sales is “buying the dip.”

All-Time Low Example

Assume that one of the country’s largest malls, which debuted in 2015, regularly cuts the price of a specific electrical device to $150.99 – $160 every year.

During a worldwide epidemic in 2020, which impacted global economic status, the mall reduced the price of a similar device to $102, and it’s an all-time low since its establishment.