All About Buying the Dip Philosophy.

 When market gets choppy,

1st Investors can pull out to save their money or 

2nd They can cash their lines for discounted stocks aiming for bigger profit later on, this is called buying the dip.

In Simple, Buying The Dip is when investors purchase assets after they have dropped in price on the assumption that their value will bounce back.

💥 Investors willing to drive in tend to have one of three main motivations:-

1. Investors want to buy into growing companies they care less about the price of the stock and more about the opportunity in the company they think will experience the significant growth in future. 
2. Other investors looks for stock with upward momentum meaning rising prices they are most interested in the timing the bottom of the dip, so they can maximize profits.
3. And then their is the investors who want cheap stock. they don't care as much as about how fast and how far their stocks will grow, but they are excited that stocks that was previously expensive are now cheap enough for them to grab. mainly they think the stocks they are buying will keep going up.

➨ What ever their motivation is, if a lot of investors attempt this strategy the result can have another effect.

For Example, The 2008 crash, After the housing bubble burst it sent market into a tale but by 2009 many investors began reentering the market pushing up the prices of cheap stocks. it was known as "The Dash for Trash".

➞ The MSCI of All Country World Index ended Up returning its best annual performance on record in 2009 just after its worst performance in 2008.

➞ People who said the stock market is too scary for me right now they missed out on those mammoth gains and may have regret that.

💢 With all the danger associated with buying the dip, its no wonder that analyst considered it risky. if you choose to buy the dip you can't expect the market to bounce immediately. it could take days, weeks, months or even in some case years to rebounce and for you to pocket a profit on that trade.