The “Buy the Dip” Trading Guide (and what not to do)

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The “Buy the Dip” Trading Guide (and what not to do)

Рет қаралды 4,728

Күн бұрын

One of the most popular trading strategies among people new to the markets is “buying the dip”. Look for a price that is strong and then wait for the price to come back down (”dip”) before buying. The strategy itself is very simple on the surface and can yield quality results. With that being said, it’s also not nearly as simple as it appears, especially if you’re just getting started as a trader. I wanted to put together a “Buy the Dip” Trading Guide, but with a twist: what not to do! To best illustrate why this strategy can be great, yet harmful, I want to walk you through a small journey of a trader who was using the “buy the dip” strategy. This journey will reveal several angles that need to be considered and understood if you are to have long term, consistent, results. Let’s take a deeper look at this trading strategy and make sure you are not overly simplifying it.
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Пікірлер: 43

@codester1989 Жыл бұрын

Great Video!! I especially like how you step through the chart bit by bit and explain as the video goes, rather than revealing the entire chart all at once and losing the impact on the viewer. Thanks Clay!

@claytrader Жыл бұрын

Glad you enjoyed it!

@Antonio-bd2vw Жыл бұрын

Good video! Abundance and many wishes to your success on KZfaq and life brotha!

@claytrader Жыл бұрын

Much appreciated!

@alyw1988 6 ай бұрын

You got to be able to recognize the difference between a dip and a plunge

@claytrader 6 ай бұрын

Kind of. It's impossible to be perfect at it.

@stevenflaminio9370 3 ай бұрын

2 points to your examples. 1st, you don't buy a dip on the way down. You wait till it bounces off of a support level. 2nd, you only buy dips on an uptrend, never on a downtrend. I changed my strategy from a breakout trader to a dip buyer and my win percent is now 70%.

@homelesstrader8283 3 ай бұрын

@@stevenflaminio9370 Hi can you please provide one more Tip when Dip buying? Thanks!

@RohanKhandekar17 Жыл бұрын

I like the psychology behind the market, It works for me. I also do it with my profit and also loss. This is what I’m willing to get or lose don’t care what happens next. I’m happy with what I got, I will recover what I lost and when I lose I do not force myself recover all at once piece by piece otherwise you tend to lose more once I recover. here we go again make the profit take out what you made use your base investment

@claytrader Жыл бұрын

Good thoughts. Thanks!

@Kirikouu Жыл бұрын

Very good video thank you! I ‘ve been deed in this kind of trouble before. And I still remember the bad feeling. Not good! But according your experience to avoid this kind of trouble (like the last exemple you showed)isn’t more appropriate and a bit more prévisible to trade big compagnie who has a lot of volatility?They are heavy in the sector and they are most of the time synchronized with the indice. I am not a pro here that is why I’m asking. I just hope some day I will be able to do it full time….anyway have a good evening! Cheers Al

@claytrader Жыл бұрын

Nothing is guaranteed to "go back up", including big company stocks.

@rubenqvist4479 Жыл бұрын

Stop losses tight can be right

@rubenqvist4479 Жыл бұрын

Loose can have a fuse

@claytrader Жыл бұрын

indeed!

@ypl1977 6 ай бұрын

Nice Clay! And what is your way of "buying the dip"?

@claytrader 6 ай бұрын

These are the types of things I talk about with premium members, so if you're interested in "talking stocks/trading in general", you are more than welcome to join my private community - claytrader.com/team/

@TheRajmoney 7 ай бұрын

Great video, but what if u keep 100$ in s&p. And keep another 100$ to buy the dips in s&p? Wouls that be good strategy?

@claytrader 7 ай бұрын

Hard to say without knowing more details.

@k4ndy_067 8 ай бұрын

But the idea that big stocks will always go back up is supported by economic growth? Especially in a diversified portfolio. Take buying the dip in the S&P 500, for example. (This is the short-term dip, not talking about a huge dip due to something like the pandemic/financial crisis from the news)

@claytrader 8 ай бұрын

There is zero 'always' in the market. Yes, very big and well known companies with a proven track record have a great probability of going back up, but that is not the same as "always".