There is a big difference between BUYING THE DIPS and Buy at Low point. Buying the dips is a process where traders and investors chase assets on declines when they are in a firm uptrend. Buying at Low price thinking that stock cannot fall further is totally different.
Chasing Lows generally leads to disappointment and frustration because stocks that make new lows continue to make new lows.
Buy Low and Suffer the pain of Lower points. When stocks are declining, the best thing is to let them run its course. There is no point fighting and chasing the low point. Buying at the lowest point is the worst idea people carry in financial markets. One should always focus on trend
Do let me know your comment on the above story. One of the objectives of writing this post is to tell the journey of stock with the help of charts
1. V-Book: Science of Stock Price Action
2. Case Study: Which trading rule helped Zee Telefilms deliver 40% returns in 2015?
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication, you agree to make no trade relying in whole or in part on the comments of the writers