Buying the dip is a popular investment strategy that can be very lucrative when carried out successfully. However, the potential snag with this strategy, as the author of today’s article notes, is that “buying the dip is only an effective strategy when the dip is actually just a dip within an up trend and not the beginning of a bear market.” As such, the author proceeds to outline a process investors can use to identify stocks in long-term up trends that are experiencing short-term pullbacks. For the rules involved in this process – and for six stocks that met the criteria when the author carried out the screen – CLICK HERE.
How To Know When A Dip Is Really Just A Dip
- by Bob Mitchell