BEAR MARKET THEN WHAT

May P/L Challenge: Buy the dip or keep watching during the bear market?

This question few month ago would not mean anything to me so let’s start with the basic:
buy the dip: this mean that the market is going down and you keep buying at a lower price than few day/month/year ago
bear market : this means that the trend of the market is going down for few days/weeks/month.

DCA : Dollar cost average, this means you buy 1 at 10 dollar then market drop to 5 you buy another one at 5 meaning you have now two share at 7,5 dollars so you reduce your position. meaning that if you wait till it goes back to 10 you will already make some profit….
just based on this definition you should never wait.

Before we answer the first question let’s get to know you first ;)

Would you prefer to buy when the market is going down or when is going up ?
to me the answer is pretty simple, you will never know how is the market going to behave there are too many parameters that is not under your control
PENDEMI/ WAR/ NEW TECHNOLOGY/ NEWS ABOUT ANYTHING / PEOPLE SENTIMENT/ FEAR / COMPANY BUSINESS/ EMPLOYE MISTAKE CAUSING REPUTATION….
the list can go on and you get the idea…
so to make it simple here is my tips:
• Buy only company you know or make research on
• Never buy with money you urgently need
• Never sell lower than you purchase price (including your fee)
• You can use margin Call only if you have enough cash in your bank account in case the market goes down
• Don’t put all you money in the same Stock
• If the market goes lower than you position* then DCA* it unless there is a bad news on this company then in this case sell without regret.

Now that you have my few and most important tips let’s go back to the man question :

Buy the dip or keep watching during the bear market?

since we all agree that you never know if the market goes up or down how would you know if the bear market is going to stop and rebound faster than the drop ! …. then since you don’t know just buy and if it drop even more buy even more.

once again buy when you can afford and one day you will thanks me ;)
below few exemple of not knowing what’s going on and happy that I did….
$Tesla(TSLA.US)$

$NIO Inc(NIO.US)$ another exemple on buying the deep even if I don’t know ( as you can see it went even lower)