There has been always an excellent dip-buying stock market where you get to know
how to do it right if you want to act tall as a winner.The idea of buying laughing free stocks on a dip sounds nice, but it isn't easy to put into practice. Some traders think that buying a stock on a dip means that the weak stocks should be bought. Well, what defines a dip? It depends on the timing and the frame of time. When do you know that a stock has finished dipping and is now ready to turn higher ?
It is not always neccesary to buy any stock just becauseit looks "cheap." Buying a stock simply states that it's at a lower price than it once was is never a reason to buy in my opinion. Maybe you can shop on the weekends that way, but in the trading world, you'll often pay dearly when you buy weakness. I wouldn't buy a stock that just got pounded, even if it is much cheaper than it's ever been. In fact, you would probably be far better off short selling a stock on a 52-week low than buying it.
Having addressed with the fact that it is only the time which makes a sense to buy a stock on the dip when it's in the middle of an uptrend! During an uptrend, a dip is merely a pullback which sets up a new pivot point for buying. There is something also very nice about the pullbacks that within uptrends it also produce natural stop-loss areas which let you manage your trade much better than buying blindly.
So When you convict yourself to buy stocks or commodities on the dips, be sure that what you are doing so when there is an uptrend intact!Don't ever buy a downtrending stock that will leave you feeling more like a stuckholder rather than a stockholder. Buying pullbacks within uptrends can give you a great initial move and put your trade well into the black right from the start!