r/stocks
Buy the Dip - Selectively
Advocates selective DCA into high-quality stocks like MSFT and META during minor dips, warning that waiting for a major market crash may cause investors to miss entry opportunities.
- Waiting for a broad market correction of 10%+ often results in missing optimal entry points for resilient, high-quality individual stocks.
- High-quality tech giants with strong fundamentals offer better risk-adjusted returns than trying to time the absolute bottom of the entire market.
- Dollar-cost averaging (DCA) allows investors to capture value gradually without exposing themselves to the risk of mistiming a full market reversal.
- The author acknowledges the possibility of significant further downside, implying current prices may not yet represent the best value.
- Buying during a dip carries the risk of catching a falling knife if the market correction deepens beyond the expected 2-3% range.
What are people not understanding with “Buy the Dip”? Just because the market is down 2-3% in a day and 5% from the top, doesn’t mean you need to keep waiting to enter specific stock names. If you are waiting for the whole market to drop 10%+ you may and most likely will miss your opportunity in specific stock names. Just don’t buy stocks that just hit their top if you want a deal. But high quality stocks like Meta, Microsoft, etc. if you keep waiting for those based on the entire market to crash idk what “value” you’re waiting for. Now don’t get me wrong we may see much more downside but we could also see a deal and this reverse fast. Slowly DCA, pick your stocks and understand value exists everywhere in the market.
"buy, just not the bad ones"
ok
“Just time the market correctly”
“And pick the right stocks”
I bought msft at 448 youre welcome
Today I just bought more of an ETF.......SPMO
I want a higher ratio to VOO in my portfolio
I did exactly the same. A 5% off sale in one day is crazy.
I'm slowly trying to get SPMO a larger position than QQQ and SCHD. It's currently my favorite ETF.
I added SPMO today too in my Roth
Delusional. Good luck with the stock picking man.
I think the part that warrants underscoring is “dollar cost average” back in. If you slowly drop money into a stock or fund, unemotionally and according to a fixed schedule, you will hedge your bets if the stock keeps falling, take advantage of a rise if it starts to recover while you are still investing and/or get a decent average price of it rises the entire time you buy in. Emotionally it’s a win all around. Unless of course you have a 2+ year investment horizon in which case just dumping all you have into one purchase won’t make a difference in the long run.
Now a good time to buy AVGO MU NVDA ?
What you’re saying is to both: time the market, and, pick the right stocks. Essentially the opposite of what many investors would tell you…
My port was -11% today.
I opened a good amount of CSPs on tech tickers that took a solid beating, but you better know I'm holding back dry powder for next week!
Yeah, I think it's going to continue to fall for at least a few more days. One good Green Day and people are going to FOMO back in.(knock on wood.)
I'm going to add to my SPMO position heavily on these red days
I like Campine nv - but hte dip doesnt keep coming lately..