I'm baaaack!! That means it's time to Buy the Dip©

Buying the dip means buying when the market is in a downtrend. The rationale is that as the market indices rise over the long term, so whenever they fall gives a discounted a buying opportunity.

Its true that equity market indices do rise over the long term, but that's because their memberships are continually revised to eliminate poorly performing stocks and introduce better performing stock. So the index is constructed like a ratchet, in which the positive influence will always eventually prevail.

Individual stock prices however are not subject to any such influence and may just as easily fall as rise. The evidence for this is in the fact that the stock index memberships are being continually revised.

So buying a stock on market dips is a 50/50 bet - that's stupid. Betting that the index value will rise is smart.
 
Buying the dip means buying when the market is in a downtrend. The rationale is that as the market indices rise over the long term, so whenever they fall gives a discounted a buying opportunity.

Its true that equity market indices do rise over the long term, but that's because their memberships are continually revised to eliminate poorly performing stocks and introduce better performing stock. So the index is constructed like a ratchet, in which the positive influence will always eventually prevail.

Individual stock prices however are not subject to any such influence and may just as easily fall as rise. The evidence for this is in the fact that the stock index memberships are being continually revised.

So buying a stock on market dips is a 50/50 bet - that's stupid. Betting that the index value will rise is smart.

That's why I buy index futures when buying the dip. I've been stopped out, sure, but on net it's a profitable strategy.
 
That was what I did years ago when I was investing in stocks.
When price dropped tremendously, I would look for opportunity to buy dirt cheap stocks.
And when price dropped tremendously again,
I would continue to look for opportunity to buy dirt cheap stocks.

By now, there should be lots of people laughing all the way to the bank
(provided you press the SELL BUY buttons in correct sequence ).

Stop investing! Go do trading !
 
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That was what I did years ago when I was investing in stocks.
When price dropped tremendously, I would look for opportunity to buy dirt cheap stocks.
And when price dropped tremendously again,
I would continue to look for opportunity to buy dirt cheap stocks.

By now, there should be lots of people laughing all the way to the bank
(provided you press the SELL BUY buttons in correct sequence ).

Stop investing! Go do trading !
And if you held them from all those years ago? :sneaky:
 
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