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Buy the dip! This is an all too popular trading slogan that I’m sure you’ve seen, even if you’re just getting started with day trading as a beginner. There are many different forms of the “buy the dip” strategy, so unfortunately it is not as simple as “buy a stock when it is going down”. Developing a day trading strategy takes a bit more fine tuning than that! (haha) On a more serious note though, just because a stock price is going down does not mean there is not still a profitable opportunity to trade. As always, you need to have risk management and control at the forefront of any trading decisions you are making, but when you do, it’s amazing how many ways you can make money. In this video you’ll see the price of Tesla’s stock (TSLA) begin to go down and I decide to take action and “buy the dip”. The stock market makes zero guarantees, so just because you have a strategy does not mean you will always be making money! Sometimes you’ll buy the dip and the stock (or whatever financial asset you’re trading) will keep on dipping! This is why I say all strategies must start with and be built around risk management. Back to my trade however, I bought the dip as TSLA stock price dropped… but, did I make money? You’ll have to watch the video to get that answer!
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