Is it recommended to buy in a stock market dip?
Asked 5 years ago
I'm wondering if it's a good time to buy EH. What are you guys buying in the dip?
Andia Rispah Igobwa
Thursday, May 06, 2021
The prices get cheaper and cheaper because lower prices follow each dip. Most investors do not want to hold onto losing assets and avoid buying the dips during a downtrend.
However, buying dip during downtrends may be suitable if you are a long-term investor who sees value in low prices.
You can actually buy anything during the downtrend and still profit. You can even get a well-performing index to find and grow it massively during a dip or, unfortunately, crash, But that’s the best time to buy anyway than chasing an already moving market.
Andrew Moran
Wednesday, May 26, 2021
If you believe in the long-term potential of the stock and you are convinced by the company's financials, it would be wise to buy the dips.
Consider what legendary billionaire Warren Buffett recommends: "Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
Dips are a healthy market function. Many novice investors are not accustomed to them, especially after last year's enormous bull run.
Ultimately, the objective should be to dollar cost average (DCA) down your investments. This way you can avoid the market volatility and cash in when there is a monumental rally.
You never want to chase market momentum, but already be on the ground floor.
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