Retail investor: I bought the dip like you're supposed to... & it just kept dipping. Down another 20%.


Me: What'd you buy?
Retail investor: Some beat down Quantum startup. It was 60% off its high... how much lower could it go?
Me: If a stock falls from $100 to $40 but fair value is at $20... you still paid too much
Retail investor: ...I never thought about fair value. I just saw the dip
Me: A falling stock still way above fair value isn't a dip... it's a recipe for disaster. A falling stock below fair value? That's a dip.
Retail investor: I just always saw all dips as automatic buys...
Me: ...nope. In order to have a compelling setup, you need BOTH a great company & it needs to be below fair value. You had neither...
No surprise you got smoked...
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