Buying The Dip π Catching A Falling π‘ Knife?
The strategy I follow while buying the dip π every time & every month!
Markets have been brutal π» for last few months now. The US stock market have officially entered the bear territory. Stock markets spooked by how federal reserve is determined to control inflation through rate rises. The recent rate rise also has been spectacular and highest in the history of the US in last 30 years! Similar stories can be seen even in the developed world with inflation spiraling out of control amidst commodities super cycle.
Why the investors are loosing?
Many investors have lost π a significant portion of their investment in this bear market - most of them being new to investing (specially the stocks) never knew that stocks can even go down! That's the dilemma of new investors who enter the market in bull run. Most of them see every dip as a buying opportunity and invest every time the market or their favorite stocks fall irrespective of the reason and value of where they are investing. Remember, stock market may have came down, but it might not be cheap as yet!
The strategy π―
I am a big fan of dollar cost averaging (DCA) when it comes to stock market investment - the 2 important factors to consider while investing every month with DCA are:
β Your investment budget
β Your assessment if the market is cheap or expensive based on the current economic scenarioβ¦β¦..
If you are interested to read the full article and what content has been uploaded last week, then please do visit the link: https://walikhan.co/post/buying-the-dip-vs-catching-the-falling-knife/
π‘ I invest in global stocks through SARWA - if you open the account with them using the link below you will get π° $50 as referral bonus once you fund your new SARWA invest account: https://www.sarwa.co/invite/KHAN1890
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KEEP HUSTLING ;-)