Don't Get Burned: The Truth About Buying the Dip

In this episode, we discuss why you should be cautious about automatically buying the dip. While it might seem like a great opportunity, underlying company issues, sector-wide problems, and broader economic concerns can turn this strategy into a costly mistake.

🛑 Understand how poor earnings, leadership changes, and debt levels can indicate deeper issues within a company.
📉 Learn about sector-wide problems and how they can impact stock performance, using examples like coal and retail industries.
🌍 Explore how broader economic concerns, such as recessions and geopolitical tensions, affect stock prices across various sectors.
📊 Discover how technical analysis can signal further declines, with insights on indicators like RSI and moving averages.
🤯 Uncover the psychological factors and emotional biases that can lead to irrational investment decisions during market volatility.

Thank you to BMO ETFs for providing support for this video.
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[beaviswealth]

Don't get my wrong. If you're able to buy a great company on a dip, that's ideal. But far too many people just jump on adding to a position when the price drops, with virtually no plan or thought process. This video will give some extra perspective on when you might want to be a bit more cautious before just jumping into the deep end.
Enjoy the video! Don't forgot to comment and share your thoughts. 👍👍

[jwallace]

Buy boring, diversified ETFs on the dip. Spread out the risk. Individual stocks can be very risky.

[pjm]

my dad bought Nortel stock during "a dip". Turned out it was the high...LOL. He also bought Bre-X. Maybe he was just terrible at stock picking!

Buy TD though. It's on sale. They aren't going anywhere.

[greentea]

Buying the dip have always work for me. Media always portrayed buying the dip is dangerous. Always buy when there is blood in the street even if it is yours.

[BraddPaisley]

Good point.the market has been crazy lately, a few surprises here and there.. with all the global happenings taking place I think it's safe to say that a severe global recession is looming.

[Slickpete]

*time in market is more important then timing the market*

*zoom out & chill out*
(stock chart long term view)

[evadeanu]

I like your examples. They say never buy on a down trend. Sometimes we win, sometimes we learn. Thanks Marc.

[roberttaylor]

10:20. I remember CM going down during the sub prime issue, or all Canadian banks dropping, even though they didn't have any exposure to the sub prime issue...in retrospect it was a great time to buy CM!

[MDDIRECT]

I enjoyed seeing some technical analysis during the video and how you view potential opportunities
Thanks and look forward to future content

[mrslcom]

Yes, buying the dip without knowing why is like gambling. What looks like a dip today may not be a dip over a longer time period. There’s a reason why someone else is selling the stock at a cheaper price.

[Tobi_Jones]

fantastic video would love to see more videos like this with historical examples

[AndyWarhol]

Great video, Mark - Fantastic detail and neighborly helpful.

[momo]

Great advise Marc. Thanks for the great video!

[scottscriticalmass]

Excellent video Marc!
Investor refuses to buy a stock as it goes from $50 -> $75, but jumps to 'buy the dip' @ $65... WHY?!?!?
I obviously oversimplified things, but far too many blindly employ this so-called strategy IMHO.
I'll never understand why folks don't just decide what they think a company/stock is worth and make their decisions accordingly. That's what makes investing fun IMO. Cheers my friend.
One more thing... A stock can drop 40, 50% or more and still be overvalued. Buying the so-called dip could very well lead to infinitum buying. When folks argue with me about this, I always ask "define dip for me". Crickets or "it depends", which is a non-answer as far as I'm concerned. Sorry for blabbing on!

[blackgrandpa]

I invest in zero individual stocks only ETFs because I'm in Canada 🇨🇦 and always buy big dips weekly I'm into VFV and HXQ to the end😂

[InstalockLoL]

I plan on buying the market for long-term 20+ years, I understand there have been decades of poor performance, but is there any issue with buying dips in the market?

[roberttaylor]

When is the story on A&W coming out ? ;) A great 'Canadian" institution!

[andvfx]

I learned from pasts “dips”. Going to add slower this time.

[BarbDesautelsCalgaryRealEstate]

Great video, I always worry about this .

[christinewickson]

What platform do you recommend for learning about a company’s key fundamental indicators if you don’t have the time to invest gathering the data fully yourself? Is there any trustworthy and complete platform?