Should You Buy the Dip? Why I Say Absolutely
Buy the Dip, Short the Vix, F Bitcoin! That is one of my favorite scenes in the show Industry, and it is actually where I got the idea to write this blog post.In terms of the question of should you buy the dip, I would say that you should buy the dip every single time, but only if it is an index fund, anything short of that and you are speculating, possibly in a major way. Buying the dip when talking about something like the DOW Jones Industrial Average, the S and P 500, a Global Index Fund, or heck even a well known Japanese Index like the Nikkei 225, is completely fine, and will yield you profits literally 100% of the time should you stay the course. With this being said, buying the dip on something more risky, like the American Airlines post in our featured image, or in something like a Penny Stock, could lead to full blown disaster. And so, in this blog post, let’s talk about buying the dip, something that is considered by Wall Street to be an overtly risky strategy but that I still fully believe in. Read on or subscribe to our blog for additional details and information.
Other topics that we’ll be discussing in the high finance category include:
Using Options for leverage
Shorting a stock
Making money with stock trading
Short Term Holdings Tax
Making Money Quickly
Why day trading leads to lower returns
why you probably can’t beat the stock market
Why trading is giving up market returns
And much more, read on or subscribe to our blog for additional details and information.
Should You Buy the Dip, Why I Say Yes in the Right Circumstances
So, buy the dip is actually a strategy that can work, under the right circumstances that is. When you buy the dip, you should only do so if it is an index fund or a benchmark, that or a Blue Chip Stock with fantastic fundamentals. Some examples of stocks or ETF indexes that you should absolutely buy the dip on include
- Global Index Funds
- S and P 500 Index Funds
- Apple Stock
- Any Blue Chip Stock
- KO or Coca Cola Stock
- The Nikkei 225
- Japanese Index Funds
- Any Mutual Funds
Examples of things that you should not Dollar Cost Average, or buy the dip on include:
- Penny Stocks
- Low quality stocks
- Castle in the Air Strategies
And that’s pretty much the gist of buying the dip, buy low and sell high always works when its a quality stock based on firm fundamentals!
My Final Thoughts on Buying the Dip, Once Again Keeping This Short!
So like I said, short and sweet on this one. I have been noticing that on this blog we are getting somewhat unfocused in terms of the content (we’ve been doing a lot of TV show reviews, writing stuff, esoteric blog posts and SEO/Internet Marketing blog posts, and less raw Finance and Accounting, so I am getting back to the original game plan!) Buying the dip should be done only when there is a good security, or an index at hand. In the case of index funds like the S and P 500, buying the dip and holding the index over the long term will certainly result in some drastic profits. For more information on all things Finance and Business, read on or subscribe to our blog for additional details and information.
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