Here’s some good news: the notion of “buying the dip” seems to have largely disappeared from the FinTwit vocabulary. This strategy works well in a bull market, when everything just bounces off the moving average or lower trendline and stays in an ascending channel. Share prices “only go up” and so does the value of your portfolio.
On the way back down, buying the dip is a cunning way to ruin your portfolio. In bear markets, you’ll find that patience is rewarded. In contrast, the ongoing buying of every dip is punished...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.