[oh-ver-stey] 
| 1. | to stay beyond the time, limit, or duration of; outstay: to overstay one's welcome. |
| 2. | Finance. to remain in (the market) beyond the point where a sale would have yielded the greatest profit. |
| o·ver·stay (ō'vər-stā') tr.v. o·ver·stayed, o·ver·stay·ing, o·ver·stays To stay beyond the set limits or expected duration of; outstay: The guests overstayed their welcome. |
Overstay
The act of holding an investment for too long. It often occurs when traders attempt to time the market by identifying the end of a price trend and the beginning of a new one, but, due to greed and fear, tend to overstay their positions. This usually results in reduced gains or, worse, further losses.
Investopedia Commentary
Knowing when to sell or get out of an investment is just as important as knowing when to get in. However, timing the market correctly is a task that even professional investors and traders find difficult to accomplish on a consistent basis, so attempting market timing is not recommended for the average investor.
Related Links
The Art Of Selling A Losing Position
A Look at Exit Strategies
The Five Biggest Stock Market Myths
See also: Buy and Hold, Fallen Angel, Falling Knife, Market Timing, Technical Analysis, Trend
vərˈsteɪ