When to "buy the dip"

Consider acquiring a product on sale and then reselling it for a profit. This is essentially how the "buy the dip" trading technique operates, although it is a little more complicated. When a financial asset's price unexpectedly decreases, you buy it in the hopes of selling it later on for a profit when the price starts to rise or recover

Although "buying the dip" is frequently connected with stocks, it may also be applied to indices, currencies, commodities, and even cryptocurrencies.

The justification for purchasing the dip is that higher prices typically follow them during a downtrend (which is a chart pattern characterized by decreased value and confirmed by successively lower highs and lows).

By buying an asset on a dip, you take advantage of a good asset's price decline in the hopes that it will rise again and generate profits in the future. One of the basic investing strategies essentially is purchasing low with the intention of selling high.

One can benefit financially by purchasing the dip because doing so enhances the likelihood of making money sooner. However, taking into account other aspects like your time horizon and the potential length of time it may take for some assets to recover, this approach is not foolproof.

Investors should be cautious of the dangers while buying the dip because it does not always result in profits, just like with all trading strategies.

The danger that the asset price won't go up again or that it will take a very long time to recover is one of the biggest drawbacks of buying the dip. When this occurs, you may become trapped in your position or suffer a big loss when you choose to leave the market.

The inability to determine whether an asset's declining price is merely a passing trend or a warning that prices are about to fall sharply is another danger associated with purchasing the dip. When the market dips, one can benefit from their market expertise and other investment techniques. Making informed decisions on whether the reason for the decline is superficial or has to do with the core principles of the company is made easier with this information at hand. In the case of cryptocurrencies, this is not always possible.

When prices are rising and making higher lows and higher highs, it usually pays to buy the dip when an asset is in an uptrend. According to this theory, the price of the asset will often rise after a decline.

I should exercise caution when buying an asset's price dips when it is in a downtrend since the price will continue to fall, with each dip being followed by lower prices.


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I am not a financial adviser. This article is not meant to be financial advice. My articles on cryptos, precious metals, and money share my personal opinion, experiences, and general information on cryptos, precious metals, and money.
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The recent dip was I guess the right time to buy crypto.. Unfortunately, I have no extra lol

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It's really a guessing game, @jane1289. It is unlike stocks, where you have fundamentals to study because they are ownership shares to an actual business.
!LADY 🥰❤️🤙

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I bought Litecoin and it's value down by 18%. So I'm going to acquire more, its price might still be lower !

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sweet L coin

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The danger that the asset price won't go up again or that it will take a very long time to recover is one of the biggest drawbacks of buying the dip. When this occurs, you may become trapped in your position or suffer a big loss when you choose to leave the market.

Probably it will keep going down in the near future, and maybe it will take even years to go up again. Invest only, which you can afford to lose. Many people sold their cryptocurrencies in the recent past. I keep holding and accumulating various cryptocurrencies. I focus on the long term aspect (years and decades).

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And those who sold probably lost a portion of their investments. My all-time net return in bitcoin is down by 229.49%. It will take forever to recover.
!invest_vote

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(Edited)

And those who sold probably lost a portion of their investments.

Seeing the current market trend, many people lost probably a big portion of their investment. And some (or many?) of them realized the loss. I still see people selling bigger amounts of Hive around the $0.28 USD price. I do not know why they do it.

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You know, I don't understand that either! It is mind-boggling, because it runs counter to common sense!

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Cool silver round, I've never seen one before! I agree with you completely on buying the dip, especially when the momentum is driving prices up. Great way to increase your investments!
!PIZZA

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The litecoin silver round was a gift from a fellow stacker two years ago.
When an asset is on an uptrend, its price will often rise after a decline. That has been my experience.
!PIZZA

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Buying the dip is a good strategy @silversaver888 😀
Investors just need to take bit of time and do "due diligence"!
As you stated not all buying the dip will result in a profit...... Litecoin is a crypto I HODL and it has under performed, I still believe longterm it will do well😇😀

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That silver round was gifted to me by a fellow stacker some two years ago. I do HOLD Litecoin.
All time returns is ↘ $63.37, hehehe.
!PIMP

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I got News for You
Ms. Saver @silversaver888 knows Her Latin.........." Vires in Numeris "

!LUV

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Buy The DIP so You can eventually Soar with Dragons @silversaver888

!LUV

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Ms. Saver @silversaver888

SANTA HAS A CHIMNEY PROBLEM
image.png

!LOL

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(Edited)

Ms. Saver @silversaver888
You have always been Right about Angels from when I First talked with you..........

Christmas 1881

Pa never had much compassion for the lazy or those who squandered their
means and then never had enough for the necessities. But for those who were
genuinely in need, his heart was as big as all outdoors. It was from him
that I learned the greatest joy in life comes from giving, not from receiving.

It was Christmas Eve, 1881. I was fifteen years old and feeling like the
world had caved in on me because there just hadn't been enough money to buy
me the rifle that I'd wanted for Christmas. We did the chores early that
night for some reason. I just figured Pa wanted a little extra time so we
could read in the Bible.

After supper was over I took my boots off and stretched out in front of the
fireplace and waited for Pa to get down the old Bible. I was still feeling
sorry for myself and, to be honest, I wasn't in much of a mood to read
Scriptures. But Pa didn't get the Bible, instead he bundled up again and
went outside.

I couldn't figure it out because we had already done all the
chores. I didn't worry about it long though, I was too busy wallowing in
self-pity.

Soon Pa came back in. It was a cold clear night out and there was ice in
his beard. "Come on, Matt," he said. "Bundle up good, it's cold out
tonight." I was really upset then. Not only wasn't I getting the rifle for
Christmas, now Pa was dragging me out in the cold, and for no earthly reason
that I could see.

We'd already done all the chores, and I couldn't think of
anything else that needed doing, especially not on a night like this. But I
knew Pa was not very patient at one dragging one's feet when he'd told them
to do something, so I got up and put my boots back on and got my cap, coat,
and mittens. Ma gave me a mysterious smile as I opened the door to leave
the house. Something was up, but I didn't know what.

Outside, I became even more dismayed. There in front of the house was the
work team, already hitched to the big sled. Whatever it was we were going
to do wasn't going to be a short, quick, little job. I could tell. We
never hitched up this sled unless we were going to haul a big load. Pa was
already up on the seat, reins in hand. I reluctantly climbed up beside him.
The cold was already biting at me. I wasn't happy.

When I was on, Pa pulled the sled around the house and stopped in front of
the woodshed. He got off and I followed. "I think we'll put on the high
sideboards," he said. "Here, help me." The high sideboards! It had been a
bigger job than I wanted to do with just the low sideboards on, but whatever
it was we were going to do would be a lot bigger with the high side boards on.

After we had exchanged the sideboards, Pa went into the woodshed and came
out with an armload of wood - the wood I'd spent all summer hauling down
from the mountain, and then all fall sawing into blocks and splitting. What
was he doing?

Finally I said something. "Pa," I asked, "what are you
doing?" "You been by the Widow Jensen's lately?" he asked. The Widow
Jensen lived about two miles down the road. Her husband had died a year or
so before and left her with three children, the oldest being eight. Sure,
I'd been by, but so what?

Yeah," I said, "Why?"

"I rode by just today," Pa said. "Little Jakey was out digging around in
the woodpile trying to find a few chips. They're out of wood, Matt." That
was all he said and then he turned and went back into the woodshed for
another armload of wood. I followed him. We loaded the sled so high that I
began to wonder if the horses would be able to pull it.

Finally, Pa called a halt to our loading, then we went to the smoke house
and Pa took down a big ham and a side of bacon. He handed them to me and
told me to put them in the sled and wait. When he returned he was carrying
a sack of flour over his right shoulder and a smaller sack of something in
his left hand. "What's in the little sack?" I asked. Shoes, they're out of shoes.

Little Jakey just had gunny sacks wrapped around his feet when he
was out in the woodpile this morning. I got the children a little candy
too. It just wouldn't be Christmas without a little candy."

We rode the two miles to Widow Jensen's pretty much in silence. I tried to
think through what Pa was doing. We didn't have much by worldly standards.
Of course, we did have a big woodpile, though most of what was left now was
still in the form of logs that I would have to saw into blocks and split
before we could use it.

We also had meat and flour, so we could spare that,
but I knew we didn't have any money, so why was Pa buying them shoes and
candy? Really, why was he doing any of this? Widow Jensen had closer
neighbors than us; it shouldn't have been our concern.

We came in from the blind side of the Jensen house and unloaded the wood as
quietly as possible, then we took the meat and flour and shoes to the door.
We knocked. The door opened a crack and a timid voice said, "Who is it?"
"Lucas Miles, Ma'am, and my son, Matt... could we come in for a bit?"

Widow Jensen opened the door and let us in. She had a blanket wrapped
around her shoulders. The children were wrapped in another and were sitting
in front of the fireplace by a very small fire that hardly gave off any heat
at all. Widow Jensen fumbled with a match and finally lit the lamp.

"We brought you a few things, Ma'am," Pa said and set down the sack of
flour. I put the meat on the table. Then Pa handed her the sack that had
the shoes in it. She opened it hesitantly and took the shoes out, one pair
at a time.

There was a pair for her and one for each of the children -
sturdy shoes, the best... shoes that would last. I watched her carefully.
She bit her lower lip to keep it from trembling and then tears filled her
eyes and started running down her cheeks. She looked up at Pa like she
wanted to say something, but it wouldn't come out.

"We brought a load of wood too, Ma'am," Pa said. He turned to me and said,
"Matt, go bring in enough to last awhile. Let's get that fire up to size
and heat this place up."

I wasn't the same person when I went back out to bring in the wood. I had
a big lump in my throat and as much as I hate to admit it, there were tears
in my eyes too. In my mind I kept seeing those three kids huddled around
the fireplace and their mother standing there with tears running down her
cheeks with so much gratitude in her heart that she couldn't speak.

My heart swelled within me and a joy that I'd never known before, filled my
soul. I had given at Christmas many times before, but never when it had
made so much difference. I could see we were literally saving the lives of
these people.

I soon had the fire blazing and everyone's spirits soared. The kids
started giggling when Pa handed them each a piece of candy and Widow Jensen
looked on with a smile that probably hadn't crossed her face for a long
time. She finally turned to us. "God bless you," she said. "I know the
Lord has sent you. The children and I have been praying that he would send
one of his angels to spare us."

In spite of myself, the lump returned to my throat and the tears welled up
in my eyes again. I'd never thought of Pa in those exact terms before, but
after Widow Jensen mentioned it, I could see that it was probably true. I
was sure that a better man than Pa had never walked the earth. I started
remembering all the times he had gone out of his way for Ma and me, and many
others. The list seemed endless as I thought on it.

Pa insisted that everyone try on the shoes before we left. I was amazed
when they all fit, and I wondered how he had known what sizes to get. Then
I guessed that if he was on an errand for the Lord, that the Lord would make
sure he got the right sizes.

Tears were running down Widow Jensen's face again when we stood up to
leave. Pa took each of the kids in his big arms and gave them a hug. ... They
clung to him and didn't want us to go. I could see that they missed their
Pa, and I was glad that I still had mine.

At the door Pa turned to Widow Jensen and said, "The Mrs. wanted me to
invite you and the children over for Christmas dinner tomorrow. The turkey
will be more than the three of us can eat, and a man can get cantankerous if
he has to eat turkey for too many meals. We'll be by to get you about
eleven. It'll be nice to have some little ones around again. Matt, here,
hasn't been little for quite a spell." I was the youngest... my two
brothers and two sisters had all married and had moved away.

Widow Jensen nodded and said, "Thank you, Brother Miles. I don't have to
say, may the Lord bless you, I know for certain that He will."

Out on the sled I felt a warmth that came from deep within and I didn't
even notice the cold. When we had gone a ways, Pa turned to me and said,
"Matt, I want you to know something. Your Ma and me have been tucking a
little money away here and there all year so we could buy that rifle for
you, but we didn't have quite enough.

Then yesterday a man who owed me a little money from years back came by to make things square. Your Ma and me were real excited, thinking that now we could get you that rifle, and I started into town this morning to do just that, but on the way I saw little Jakey out scratching in the woodpile with his feet wrapped in those gunny sacks and I knew what I had to do. Son, I spent the money for shoes and a
little candy for those children. I hope you understand."

I understood alright... and my eyes became wet with tears again. I
understood very well, and I was so glad Pa had done it. Now the rifle
seemed very low on my list of priorities. Pa had given me a lot more. He
had given me the look on Widow Jensen's face and the radiant smiles of her
three children.

For the rest of my life, whenever I saw any of the Jensens, or split a
block of wood, I remembered, and remembering brought back that same joy I
felt riding home beside Pa that night. Pa had given me much more than a
rifle that night, he had given me the best Christmas of my life.

Don't be too busy today... share this inspiring message. Merry Christmas
and God bless you!

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Yeah you are absolutely right always buying the coins and other things at the dip. Its gives you huge profit. Many people's invest in bull market and his assects is become to zero. I think this is perfect time buy some strong coins and wait for bull market. It gives you 10 to 100x easily.

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My experience is that when an asset is on an uptrend, its price will often rise after a decline.
!invest_vote

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I know years ago, when the Hunt brothers purchased exorbitant amounts of silver, the price plummeted! Back then, the saying was, 'buy when there's blood in the streets-even if it's yours!'

I was obviously not in precious metals back then, but you are wise to use caution and do your due diligence, before buying in a dip. If folks don't know exactly what is going on with any particular asset, then seek help from sources who do. There are tons of advice out there, both good and bad, which is why you must research and feel comfortable with the decision that is made.

Thanks for sharing sis! Love ya much!🤗😘💞🌸🎄🎁 !LADY !LADY

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A responsible investor should educate him/herself. Yes there is so much material out there!
Hugs and kisses, sis 🤗
!LADY 😍🤙🌺

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It's all about good risk management and proper planning and sticking to the plan you can't get emotional or reactive.

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You already know that I got the fake version of a silver Litecoin. On the other hand still have 20 LTC and with the price of LTC now around $64 each is tempting me to add a few more to my crypto portfolio.

Always, with love 🤗🌺❤️

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