“BUY the dip” is such a simple expression of bull-market psychology that it has its own internet acronym, with added obscenity for emphasis: BTFD. The dip on Wednesday was bigger than usual, but for the BTFD’ers that should mean a bigger opportunity to buy. Should you join them and pick up stocks?
Mostly this depends on investor psychology. If others are going to buy the dip, so should you. But we can be a bit more granular about it. Potential buyers can be split into three main camps: Those who want to buy growing companies, and care less about the price, those who want to buy cheap stocks, and care less about growth, and those who just want to buy stocks with rising prices, or momentum.
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