The WORST Investment Advice In The World

In this video, we'll go through why buying the stock market dip is horrible advice. I'll also give you a better way to invest in the stock market.

Check Out My Recommendations (It helps support the channel):

Affiliate Disclaimer: Some of the above may be affiliate links. Support the channel by signing up or purchasing through those links at no additional cost to you. I appreciate you for helping me keep this channel running

Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

1. Foregone Conclusion- Saying to buy the dip gives off this foregone conclusion that any time the price of a stock decreases you should blindly buy more of it because the price is lower today than it was a week, month, or year ago. Just because a stock is down 80% doesn’t mean that it’s automatically on sale. All it means is that the price is 80% lower than it was back in October of 2020 at the all-time high.

2. What Do You Consider A Stock Market Dip? The next big problem is that not many people have even defined for themselves what an actual “dip” is in terms of percentage amounts and even time period. Having certain investing rules put in place for yourself is a good way to mitigate risk and avoid catching a falling knife if that stock is tanking and most likely never getting back to those all-time highs.

3. Timing The Market- No matter which type of investor you are, all “buying the dip” is is another form of timing the market because you’re sitting on the sideline with cash trying to “time” when to actually deploy the money. Yes, it’s possible to time the market once, twice, even 3 times…but it’s not very probable that you’ll be able to continue to successfully do it over a long period of time. All you end up doing is sitting there with a bunch of cash on the sideline waiting for the market to HOPEFULLY dip so that you can deploy a little bit of it.

4. Instead of trying to buy the dip, just using a simple dollar cost average investing method is the best solution. Buy at the same time every month no matter what the market is doing. Yes, sometimes you’ll overpay and sometimes you’ll underpay…but you’ll end up with the market average which has shown to be successful over time.

#stockmarket #investing #indexfunds

[JarradMorrow]

Check Out My Recommendations (It helps support the channel):

[tubaherogaming]

I was thinking about this during the second half of 2020 when I started investing slowly (compared to the sum I had) and the market was trending upward. I much preferred buying a dip than the all-time highs...but at some point it hit me that all of these small "dips" were higher than all time highs a week or month or two prior, so I would have been best off if I had just put all my money in at once. I've since heard that lump sum wins in most markets because they usually trend up, though when the market does go down it feels better not to have already put all your money in.
Now I just put the small amount I can afford to in every month and use it up ASAP on what I'm the most behind in my asset allocation.

[SntYvsLrnt]

I dont even buy the dip anymore. I just invest whenever I get paid

[regisleclerc]

3 weeks between videos is wayyy tooo lonnnggg hahaha We want more!! Love your content keep it up!!

[jmmzz]

so I just want to make sure I understand you. your not saying to stop investing during a downturn in the market, your saying don't save all your money and only invest during a dip. is this correct?

[Zealand]

I don't wait for the dip, I just keep buy index, if it dip I would add more money

[SuperFS]

I’ve been buying the dip Apple, Tsla, Nvidia, preferably when they go down: so far no regrets! But of course not just the dip but whenever I get paid 😜

[Gillyx]

Thank you man!! I really needed to hear this! I’m new to the stock market and I was getting stressed out with constantly checking the market and “buying the dip”… I was trying to go “day trading style”… but at the end of the day I was thinking… it would be better if I just invest long term… and let it grow with less stress and time!

[outdoors]

I like to dollar cost average every month in index funds, however I will allow myself a week to keep an eye on the market and put the money in when I see it drop within the week. Makes me feel like I'm getting a deal. If it doesn't drop any during that week I just buy at the end of the week. I feel like I'm getting the most bang for my buck that way without holding money on the sidelines. I like your content, keep up the good work.

[crusader]

So I need to buy chips? Finally advice I can understand and follow!

[jimdaugherty]

Thanks Jarrad, you have helped me a lot.

[nickfifield]

That study is based on buying each day . Most regular investors by in monthly . Any research for that more realistic scenario?

[joeldanker-dake]

What's wrong with buying the dip on index funds if you're buying and holding for a decade plus?

[MM-qvlf]

The worst investment advice is when somebody tells you NOT to buy the dip. Don't buy the dip and during downturns if you don't want to make money. 😂

[mv]

This advice works for long term investors with index funds and passive income portfolios. Not for growth stocks and traders - long term investing is different than trading. Other factors involved instead of to dip or not to dip.

[grigorirasputin]

The takeaway from the video is "Don't buy the dip for discounted chips"

[davidray]

I don't buy the tip per say but since I'm 40 percent in bonds, I'm happy to move some bonds to the SP500 temporarily when the index drops more than 10 percent like right now. When it pops back I rebalance.

[michaelak]

I like dips. A spicy avacodo or a nice 5 layer. Great video.
I invest 10% in 401k out of payroll and an additional 10% into ROTH/Brokerage (vanguard) on paydays. When there is a nasty dip (like 4% on friday) I buy some more....
buy buy buy

[lovelightcontinuum]

That like button I touched for Maggie 💖

[violeteyes]

The worst investment a man in the U.S. could ever make is to get married.