What I don't understand about buying dips

[stock_trad3r]

Quote from Longhorns:

Stock_Turder doesn't even have a trading account.

Please don't believe the drivel he spews.

I use etrade. You probably use a fullservice broker and pay $50 for your trades.

 

[PORNSTAR69371]

Quote from stock_trad3r:

I use etrade. You probably use a fullservice broker and pay $50 for your trades.

Please post a screen shot of your buying power, or else one of your trading blotters so you can prove to us what a teriffic trader you are.

 

[SiSePuede!]

Quote from PORNSTAR69371:

Please post a screen shot of your buying power, or else one of your trading blotters so you can prove to us what a teriffic trader you are.

He admits to only having $100k in net worth and using a 17" monitor...that was his bragging action.

 

[ASusilovic]

Quote from makloda:

Dip buying is what all professionals do, even Japanese housewives! Don't let the naysayers confuse you. Take it from a pro, Naoko Ogawa, a 34-year-old freelance writer:

"When the yen rose to a two-week high of 162.20 against the euro on May 25, Naoko Ogawa, a 34-year-old freelance writer, used a 1,000 euro ($1,300) deposit to buy 10,000 euros. She sold four days later, close to a then-record high of 164.29 yen.

``You just need to buy the dollar and the euro on dips, then sell them at a profit,'' said Ogawa, who added that she has made a 20 percent return on her 1 million yen trading account since December. ``It's better than stock trading, as you can rely on daily interest.''"

(http://www.bloomberg.com/apps/news?pid=20601087&sid=adnSs4grfQlQ&refer=home)

My very personal heroes : JAPANESE HOUSEWIVES !!! Buying dips better then Deutsche Bank and UBS !!!
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asGCOUapuCyg

 

[makloda]

Dip buyers kicking ass:

Yukiko Ikebe, a 59-year-old housewife in Tokyo, in April was indicted for evading about 139 million yen in income taxes while earning 407 million yen trading foreign-exchange, according to the Tokyo District Public Prosecutors Office.

``She must have earned more money than us,'' joked Yuji Saito, head of the foreign-exchange sales department at Societe Generale SA in Tokyo. ``I said to my colleagues, `let's find her and hire her!'''

 

[gnome]

Quote from HolyGrail:

You have to find a method on where to buy the dips. Many people, as I do, use candlesticks for finding a possible entry point. The closer to the low you can buy (with a good candlestick, and the stock still in an uptrend), the lower the risk if you are wrong.

edit:

Being close to previous support or resistance is also a great candlestick confirmation.

It's ALWAYS* correct to "buy the dip".

Problem is, the "size" of the dip which is correct to buy varies.

* except when the issue is bankrupt

 

[gnome]

[Paraphrasing Will Rogers]... "Buy the dip. When it goes up, sell. If it doesn't go up, don't buy it."

 

[stock_trad3r]

The dip buying strategy has worked since October 2002. It isn't perfect but with the exception of 2000-02 it has worked pretty well.

 

[PJKIII]

Quote from makloda:

Dip buying is what all professionals do, even Japanese housewives!

So are you including Japanese housewives in your core group of dip buying professionals??

 

[crgarcia]

Quote from cashmoney69:

Guys like stock_tdr say they've had great success buying dips,

but I dont see how they pull it off. LEH has been falling for the

past 5 days, even WITH indicators, I still couldn't find a good

entry for a long position, and looking at it now, thank god i didnt.


I never buy into a position all at once, and I'm having a hard time

knowing when to add to positions, and when not too.

cm

Dip buying works best with indexes.

Individual stocks are subject to many factors, i.e. earnings reports; which may cause them to behave differently from indexes.