Definition of chasing the market

purchasing a security at a higher price than intended because prices have risen sharply, or selling it at a lower level when prices fall. For example, an investor may want to buy shares of a stock at $20 and place a limit order to do so. But when the shares rise above $25, and then $28, the customer decides to enter a market order and buy the stock before it goes even higher. Investors can also chase the market when selling a stock. For example, if an investor wants to sell a stock at $20 and it declines to $15 and then $12, he may decide to sell it at the market price before it declines even further.