Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

Buying The Dip Isn’t a Strategy 👎

2 Jul 2023 · 0 min

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0:28

A short YouTube commentary by Kardec Trader arguing that "buying the dip" is not a viable trading strategy for active traders. The speaker distinguishes long-term investing (where buying dips can make sense) from active trading, and criticizes a habit formed during the 2020–2021 bull market—where most purchases rose regardless—that led many traders to suffer losses in 2022–2023 when that assumption failed.

Because, hey, I bought the dip, it didn't go up. I bought the dip, it didn't go up. I don't think buying the dip is a strategy. If you're long term investing, yes, buying the dip is great, but if you're trading, buying the dip doesn't make sense because I've seen a lot of people picked up this bad habit in 2020, 2021, because essentially anything they bought would go up no matter what. Right? So that bad habit carried over to 2022, 2023, and now that bad habit has essentially cost them a lot of money.