Few different aspects. Take your pick…
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“Buy the dip” is attempting to time the market.
Not a recommended strategy, especially if one doesn’t have assets/income to speculate with that one can afford to lose for years/decades. -
“Buy the dip” doesn’t mean YOLO in times of crisis.
It can also mean continue to SIP. Do not stop a SIP because of a dip.
Cost-averaging will ensure a larger investment at lower prices during a dip.
A SIP also acts as a simple system that avoids the need for discretionary action during a dip. -
“Buy the dip” requires conviction. Conviction comes from knowledge.
Knowledge of not just the markets/assets one would like to invest in,
but also the knowledge of one’s own finances and one’s goals in life.
Working on obtaining clarity in these matters helps one achieve conviction in one’s financial decisions.Do you (specifically you!) even need to “Buy the dip” ?
Often, conviction can be as simple as deciding to be disciplined and not be greedy.
