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There’s an old saying in investing: “Be greedy when others are fearful.” But in reality, when others are fearful, you may not even have the courage to open your trading app.
On November 5, US stocks and Bitcoin fell in tandem. The Nasdaq plunged 5.52%, the S&P 500 fell 4.36%, and Bitcoin briefly dropped below $76k. The post-election rally quickly evaporated, and market sentiment clearly weakened.
At this point, dip buyers are starting to stir. Some think the more prices fall, the bigger the opportunity; others believe the true bottom has yet to appear, and jumping in now may just mean getting an early taste of being underwater.
In fact, the biggest mistake when buying the dip is putting all your chips in at once. The market has no obligation to rebound according to investors’ expectations, and what seems cheap may simply be a stop along the way down.
A more prudent approach is to watch for signs of the market stabilizing, deploy funds in stages, and leave yourself room to adjust.
Will you dare to buy the dip this time, or will you keep playing the cool-headed spectator on the sidelines?$SPCX