How to Buy the Dip (Quick Tip)

[AutismMaxing]

I see a lot's of "I'm going to buy the dip" comments about bitcoin, but the following advice applies to any asset that you strongly believe will be more valuable in the future but may possible dip in the near term.

1. Realize Your Emotions will take over when it Dips

When price goes down, media generates stories about why the price went down. These narratives make it seem like, to the reader that the price will keep crashing. Often it's about how there's some "critical flaw" that will destroy it.

Looking at charts, your brain will see the trends and extrapolate further downward and you may believe that the price will keep falling. The forums all over the internet will fill up with posts about how the price is going to keep dropping another 40%, 60%, or 80% or how "Bitcoin is dead and never going to recover" and those posts will get upvoted.

It will be hard to not get sucked up into this emotion and sell rather than buy. All of your emotions may be telling you it's not the right time to buy.

2. Put a limit Order in Now (If you want to buy the Dip)

You should be using limit orders for all of your buys.

A limit order is an order to buy but not pay more than a specified price. If you aren't using a limit order, and you don't know what kind of order you are using then you are almost certainly using a market order.

A market order is telling an exchange that you want to buy immediately and will pay whatever it takes to whoever is selling right now. This means the price you see is not the price you get and will likely be more expensive do to "slippage".

On top of this exchanges add a higher fee to market orders to further charge unknowledgeable users.

But the biggest reason to use a limit order for buying is that it will get filled as soon as the price dips and there are sellers who want to sell at that price. This means if the price dips in the middle of the night while you're sleeping and immediately rebounds up, you could have automatically bought at those lower prices while you were sleeping.

It also takes your emotion out of it, you're not reading the news and checking the price everyday, waiting for a dip only to be swept up in the emotion and fear of the news and watching the "falling price" only to not buy. Your order is in, and it will be automatically filled when the dip happens and with lower fees as well.

You will need to research how to do limit orders for where-ever you are choosing to buy/sell.

 

[DicedFeta]

dn read but thanks for the great advice, you probably have a great credentials and track record

 

[AutismMaxing]

dn read but thanks for the great advice, you probably have a great credentials and track record

Shit metrics for deciding what to read. People fake their "credentials" and "track record" all the time.

Had read it, you would of realized half of it is objectively true and provable. Ex: you pay higher fees and more for market orders than limit orders.

The other half had you had any experience in the markets you would have realized is true.

 

[getra]

If I didn’t have such fucking low iq 10 second attention span I could read this. Literally having trouble keeping up cause I’m retarded. Will read later.

 

[AutismMaxing]

If I didn’t have such fucking low iq 10 second attention span I could read this. Literally having trouble keeping up cause I’m retarded. Will read later.

I got you.

TLDR:

Learn to do Limit Orders.
Lower fees & your buy automatically happens when the price is low enough.

 

[Bigdog]

Bought amc at 16 and nok at 6 because someone on reddit told me to. am i fucked. is there any hope currently like 200 down

 

[AutismMaxing]

Bought amc at 16 and nok at 6 because someone on reddit told me to. am i fucked. is there any hope currently like 200 down

Oh no.

It's an obvious bubble but I don't know enough about this stock, wall street bets, and how the media will spin the story going forward to predict the the price.

I try not to buy anything unless I've put at least 20 or 30 hours of research into it, and it's competitors.

Wall street bet guys enjoy the risk of loosing it all or going big. If you like that feeling, and are ok loosing it all then there's nothing wrong here. Some of them are also buying to fuck over hedge funds who over shorted and don't care about loosing everything, so again if that's you then you're good.

Edit: Here's all the investing advice you need to know:

 

[Deleted member 10536]

I see a lot's of "I'm going to buy the dip" comments about bitcoin, but the following advice applies to any asset that you strongly believe will be more valuable in the future but may possible dip in the near term.

1. Realize Your Emotions will take over when it Dips

When price goes down, media generates stories about why the price went down. These narratives make it seem like, to the reader that the price will keep crashing. Often it's about how there's some "critical flaw" that will destroy it.

Looking at charts, your brain will see the trends and extrapolate further downward and you may believe that the price will keep falling. The forums all over the internet will fill up with posts about how the price is going to keep dropping another 40%, 60%, or 80% or how "Bitcoin is dead and never going to recover" and those posts will get upvoted.

It will be hard to not get sucked up into this emotion and sell rather than buy. All of your emotions may be telling you it's not the right time to buy.

2. Put a limit Order in Now (If you want to buy the Dip)

You should be using limit orders for all of your buys.

A limit order is an order to buy but not pay more than a specified price. If you aren't using a limit order, and you don't know what kind of order you are using then you are almost certainly using a market order.

A market order is telling an exchange that you want to buy immediately and will pay whatever it takes to whoever is selling right now. This means the price you see is not the price you get and will likely be more expensive do to "slippage".

On top of this exchanges add a higher fee to market orders to further charge unknowledgeable users.

But the biggest reason to use a limit order for buying is that it will get filled as soon as the price dips and there are sellers who want to sell at that price. This means if the price dips in the middle of the night while you're sleeping and immediately rebounds up, you could have automatically bought at those lower prices while you were sleeping.

It also takes your emotion out of it, you're not reading the news and checking the price everyday, waiting for a dip only to be swept up in the emotion and fear of the news and watching the "falling price" only to not buy. Your order is in, and it will be automatically filled when the dip happens and with lower fees as well.

You will need to research how to do limit orders for where-ever you are choosing to buy/sell.

This is not a ''how to buy the dip''. It's just a limit order vs market order... And not even that. I mean come on.

 

[AutismMaxing]

This is not a ''how to buy the dip''. It's just a limit order vs market order... And not even that. I mean come on.

You can find technical analysis all over you-tube and twitter, for price entry and exit points. But yes People should understand and use technical analysis as well and ideally understand the mathematics and game theory behind why certain patterns play out.

Using limit orders may be basic, but I personally didn't know about them for a good while and lost a lot of money because of it. I wanted to save others from the same mistake.

As far as the other half on phycology, I wanted to share it because I see comments all over whenever it dips saying "I'll buy when it dips another 80%", based on no technical analysis what so ever only pure emotion, and those people loose out. I wanted to prepare the noobs who are saying "I'll buy the dip" for what the dips will actually feel like. If they have a price entry point based on technical or fundamental analysis, they need to prepare for their emotions and media FUDing them into not entering at that point.

TLDR: basic for you, but still helpful for noobs

 

[Deleted member 10536]

You can find technical analysis all over you-tube and twitter, for price entry and exit points. But yes People should understand and use technical analysis as well and ideally understand the mathematics and game theory behind why certain patterns play out.

Using limit orders may be basic, but I personally didn't know about them for a good while and lost a lot of money because of it. I wanted to save others from the same mistake.

As far as the other half on phycology, I wanted to share it because I see comments all over whenever it dips saying "I'll buy when it dips another 80%", based on no technical analysis what so ever only pure emotion, and those people loose out. I wanted to prepare the noobs who are saying "I'll buy the dip" for what the dips will actually feel like. If they have a price entry point based on technical or fundamental analysis, they need to prepare for their emotions and media FUDing them into not entering at that point.

TLDR: basic for you, but still helpful for noobs

Tbh, if something dips 80%. I'd be hard pressed to not buy. 99% of the time it's a great trade.

 

[eduardkoopman]

don't be a fool.

just buy high; and sell low