When to "buy the dip"

Consider acquiring a product on sale and then reselling it for a profit. This is essentially how the "buy the dip" trading technique operates, although it is a little more complicated. When a financial asset's price unexpectedly decreases, you buy it in the hopes of selling it later on for a profit when the price starts to rise or recover

Although "buying the dip" is frequently connected with stocks, it may also be applied to indices, currencies, commodities, and even cryptocurrencies.

The justification for purchasing the dip is that higher prices typically follow them during a downtrend (which is a chart pattern characterized by decreased value and confirmed by successively lower highs and lows).

By buying an asset on a dip, you take advantage of a good asset's price decline in the hopes that it will rise again and generate profits in the future. One of the basic investing strategies essentially is purchasing low with the intention of selling high.

One can benefit financially by purchasing the dip because doing so enhances the likelihood of making money sooner. However, taking into account other aspects like your time horizon and the potential length of time it may take for some assets to recover, this approach is not foolproof.

Investors should be cautious of the dangers while buying the dip because it does not always result in profits, just like with all trading strategies.

The danger that the asset price won't go up again or that it will take a very long time to recover is one of the biggest drawbacks of buying the dip. When this occurs, you may become trapped in your position or suffer a big loss when you choose to leave the market.

The inability to determine whether an asset's declining price is merely a passing trend or a warning that prices are about to fall sharply is another danger associated with purchasing the dip. When the market dips, one can benefit from their market expertise and other investment techniques. Making informed decisions on whether the reason for the decline is superficial or has to do with the core principles of the company is made easier with this information at hand. In the case of cryptocurrencies, this is not always possible.

When prices are rising and making higher lows and higher highs, it usually pays to buy the dip when an asset is in an uptrend. According to this theory, the price of the asset will often rise after a decline.

I should exercise caution when buying an asset's price dips when it is in a downtrend since the price will continue to fall, with each dip being followed by lower prices.


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The danger that the asset price won't go up again or that it will take a very long time to recover is one of the biggest drawbacks of buying the dip. When this occurs, you may become trapped in your position or suffer a big loss when you choose to leave the market.

Probably it will keep going down in the near future, and maybe it will take even years to go up again. Invest only, which you can afford to lose. Many people sold their cryptocurrencies in the recent past. I keep holding and accumulating various cryptocurrencies. I focus on the long term aspect (years and decades).

And those who sold probably lost a portion of their investments. My all-time net return in bitcoin is down by 229.49%. It will take forever to recover.
!invest_vote

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And those who sold probably lost a portion of their investments.

Seeing the current market trend, many people lost probably a big portion of their investment. And some (or many?) of them realized the loss. I still see people selling bigger amounts of Hive around the $0.28 USD price. I do not know why they do it.

You know, I don't understand that either! It is mind-boggling, because it runs counter to common sense!

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@silversaver888 denkt du hast ein Vote durch @investinthefutur verdient!
@silversaver888 thinks you have earned a vote of @investinthefutur !

Yeah you are absolutely right always buying the coins and other things at the dip. Its gives you huge profit. Many people's invest in bull market and his assects is become to zero. I think this is perfect time buy some strong coins and wait for bull market. It gives you 10 to 100x easily.

My experience is that when an asset is on an uptrend, its price will often rise after a decline.
!invest_vote

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@silversaver888 denkt du hast ein Vote durch @investinthefutur verdient!
@silversaver888 thinks you have earned a vote of @investinthefutur !

It's all about good risk management and proper planning and sticking to the plan you can't get emotional or reactive.

I stay away when I can be level-headed about something! Can't get emotional!
!invest_vote

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@silversaver888 denkt du hast ein Vote durch @investinthefutur verdient!
@silversaver888 thinks you have earned a vote of @investinthefutur !

You received an upvote of 100% from Precious the Silver Mermaid!

Thank you for contributing more great content to the #SilverGoldStackers tag.
You have created a Precious Gem!

sweet L coin

That silver round was gifted to me by a fellow stacker some two years ago. Neat, eh?
!LOL

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My girlfriend told me to stop singing Wonderwall to her
I said mayybeee...

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The recent dip was I guess the right time to buy crypto.. Unfortunately, I have no extra lol

It's really a guessing game, @jane1289. It is unlike stocks, where you have fundamentals to study because they are ownership shares to an actual business.
!LADY 🥰❤️🤙

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View or trade LOH tokens.


@silversaver888, you successfully shared 0.1000 LOH with @jane1289 and you earned 0.1000 LOH as tips. (2/30 calls)

Use !LADY command to share LOH! More details available in this post.

I bought Litecoin and it's value down by 18%. So I'm going to acquire more, its price might still be lower !

It is still down by 1.6% as of a few minutes ago.
!LOL

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Police on the case say he has a sketchy past.

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Cool silver round, I've never seen one before! I agree with you completely on buying the dip, especially when the momentum is driving prices up. Great way to increase your investments!
!PIZZA

The litecoin silver round was a gift from a fellow stacker two years ago.
When an asset is on an uptrend, its price will often rise after a decline. That has been my experience.
!PIZZA

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Buying the dip is a good strategy @silversaver888 😀
Investors just need to take bit of time and do "due diligence"!
As you stated not all buying the dip will result in a profit...... Litecoin is a crypto I HODL and it has under performed, I still believe longterm it will do well😇😀

That silver round was gifted to me by a fellow stacker some two years ago. I do HOLD Litecoin.
All time returns is ↘ $63.37, hehehe.
!PIMP

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You must be killin' it out here!
@silversaver888 just slapped you with 1.000 PIMP, @silvertop.
You earned 1.000 PIMP for the strong hand.
They're getting a workout and slapped 1/1 possible people today.

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Excellent @silversaver888 !!🤗
It pays to HODL both precious metal and crypto my friend!!!!!🤗

Ms. Saver @silversaver888
You are always helping People Learn how to be Prepared..................

I know years ago, when the Hunt brothers purchased exorbitant amounts of silver, the price plummeted! Back then, the saying was, 'buy when there's blood in the streets-even if it's yours!'

I was obviously not in precious metals back then, but you are wise to use caution and do your due diligence, before buying in a dip. If folks don't know exactly what is going on with any particular asset, then seek help from sources who do. There are tons of advice out there, both good and bad, which is why you must research and feel comfortable with the decision that is made.

Thanks for sharing sis! Love ya much!🤗😘💞🌸🎄🎁 !LADY !LADY

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@elizabethbit, you successfully shared 0.1000 LOH with @silversaver888 and you earned 0.1000 LOH as tips. (1/15 calls)

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A responsible investor should educate him/herself. Yes there is so much material out there!
Hugs and kisses, sis 🤗
!LADY 😍🤙🌺

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@silversaver888, you successfully shared 0.1000 LOH with @elizabethbit and you earned 0.1000 LOH as tips. (1/30 calls)

Use !LADY command to share LOH! More details available in this post.

Indeed!🤗😘❤️🌸🎄

You already know that I got the fake version of a silver Litecoin. On the other hand still have 20 LTC and with the price of LTC now around $64 each is tempting me to add a few more to my crypto portfolio.

Always, with love 🤗🌺❤️

Do you best to gauge the pros and cons, sis!
Hugs and kisses 🤗
!LADY 😍🤙🌺

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View or trade LOH tokens.


@silversaver888, you successfully shared 0.1000 LOH with @kerrislravenhill and you earned 0.1000 LOH as tips. (2/30 calls)

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The Litecoin looks really nice

That silver round is a gift from a fellow stacker some two years ago.

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🍕 PIZZA !

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!LOL

!LOL

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Aw man @lolz.pimp, you are out of PIMP to slap people.
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!HBIT

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Success! You mined 1.0 HBIT on Wusang: Isle of Blaq. | tools | wallet | discord | community | daily <><

And, you found a BLAQ pearl (BLAQ)!



Check your bonus treasure tokens by entering your username at an H-E explorer or take a look at your wallet.

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