👉 What Does “Buy the Dip” Mean?
Buying the
#Dip means purchasing an asset after its price has dropped, anticipating it will rebound in the future.
Sounds simple, right? But it’s not always that straightforward. Timing is key, and not every dip is worth buying.
✅ The Risk of Catching a Falling Knife 👀
Just because the price has dropped doesn’t mean it can’t drop further.
A dip can become a freefall.
Rushing to buy without understanding market context can lead to significant losses.
✅ When Should You Avoid Buying the Dip?
If you’re not sure about the asset’s fundamentals.
If you’re relying on borrowed funds or leverage.
If you don’t have a long-term conviction in the asset.
If the market is clearly in a prolonged downtrend.
✅ Buying the dip can be profitable but only if done wisely.
Understand the market context.
Focus on strong projects.
Use risk management.
Remember: Capital preservation is key. It’s better to miss a dip than to lose your
#Portfolio