The “Buy the Dip” Trading Guide (and what not to do)

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One of the most popular trading strategies among people new to the markets is “buying the dip”. Look for a price that is strong and then wait for the price to come back down (”dip”) before buying. The strategy itself is very simple on the surface and can yield quality results. With that being said, it’s also not nearly as simple as it appears, especially if you’re just getting started as a trader. I wanted to put together a “Buy the Dip” Trading Guide, but with a twist: what not to do! To best illustrate why this strategy can be great, yet harmful, I want to walk you through a small journey of a trader who was using the “buy the dip” strategy. This journey will reveal several angles that need to be considered and understood if you are to have long term, consistent, results. Let’s take a deeper look at this trading strategy and make sure you are not overly simplifying it.

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The number of people trading on companies they don't know the fundamentals of is wild

blaphtome

Great Video!! I especially like how you step through the chart bit by bit and explain as the video goes, rather than revealing the entire chart all at once and losing the impact on the viewer. Thanks Clay!

codester

The history of Bitcoin you covered was fascinating!

AurélioCunhaCavalcante

Good video! Abundance and many wishes to your success on YouTube and life brotha!

Antonio-bdvw

Nice Clay! And what is your way of "buying the dip"?

ypl

Very good video thank you! I ‘ve been deed in this kind of trouble before. And I still remember the bad feeling. Not good! But according your experience to avoid this kind of trouble (like the last exemple you showed)isn’t more appropriate and a bit more prévisible to trade big compagnie who has a lot of volatility?They are heavy in the sector and they are most of the time synchronized with the indice. I am not a pro here that is why I’m asking. I just hope some day I will be able to do it full time….anyway have a good evening! Cheers Al

Kirikouu

I'm planning to invest $10, 000 into the S&P 500 for the long term, ideally during a market dip. However, I'm unsure when a dip is significant enough to buy or if I should wait longer for a potential recession. I know the saying "time in the market beats timing the market, " which adds to my uncertainty about when to invest. I'd appreciate your advice on this!

bestoffamilyguy

New drinking game every time Clay says “diamond hands” you take a drink of whatever you have!

leadthrower

I take this video is for people that invest in individual stocks, not diversified funds like etfs or index funds? In that case, wouldn't buying the dip be more advantageous?

Kb

Great video, but what if u keep 100$ in s&p. And keep another 100$ to buy the dips in s&p? Wouls that be good strategy?

TheRajmoney

6:10 he's got those bag holding hands!

wrknathome

I like the psychology behind the market, It works for me. I also do it with my profit and also loss. This is what I’m willing to get or lose don’t care what happens next. I’m happy with what I got, I will recover what I lost and when I lose I do not force myself recover all at once piece by piece otherwise you tend to lose more once I recover. here we go again make the profit take out what you made use your base investment

RohanKhandekar

But the idea that big stocks will always go back up is supported by economic growth? Especially in a diversified portfolio. Take buying the dip in the S&P 500, for example. (This is the short-term dip, not talking about a huge dip due to something like the pandemic/financial crisis from the news)

kndy_