Does Buying the dip strategy actually work?
First off it depends on your risk appetite and how deep is your pocket. Why do I say that…
1. Risk appetite high will choose shares which has seems to have more volatility. And industry or type of share will matter Eg penny stock vs blue chip.
2. Capital size. Larger capital to buy the dip or Dollar cost averaging as a strategy will determine how frequent you buy and when you buy matters.
Recent market turmoil, from my experience is to choose strong companies, enter intermittently when it falls to usual/unusual lows.
I don’t typically use 100% of capital to determine my position. It’s to factor new lows that’s expected while not losing out on the perceived Opportunity. especially when I believe in the company and charts I’m referencing.
Wondering how others invest differs from what I shared as a time tested strategy.