Buying at dips is a slang version that refers to investing in a stock after its price has declined. We need to understand that prices of shares generally tend to correct owing to many reasons. Moreover, more often than not, the correction has nothing to do with the company’s fundamentals. Correction in stock prices generally tends to happen due to investor concerns on a certain issue being overdone or owing to the negative outlook for sector as a whole due to global concerns.
As an investor, once you see that there has been a significant dip in the stock’s price or the index, you could increase your positions or buy different stocks in order to capitalise on what could be perceived as an eventual upswing.
Buying at dips as a concept is based on market fluctuation. Volatile nature of the market means that any dip in stock prices should eventually rise back up in time. Buying stocks immediately after a dip provides investors with the benefit of buying them at a discounted price.
The most important thing that you need to know as an investor is that just as all other investment strategies, buying at dips is also not a sure shot success strategy. This is largely because dips in certain stocks could be primarily due to adverse changes in the fundamentals of the underlying company. Buying at dips can be an effective strategy for all the major types of financial instruments. Moreover, the strategy would work best for you especially when the market is clearly bullish.
How ACMIIL can help
If you find markets too complex to understand, the best thing to do then is to take help of a professional expert. .
Here’s what you get when you come to ACMIIL:
ACMIIL’s research team comprises market experts who will guide you on your ‘buy on dips’ strategy based on your overall financial objectives. We will provide you with all the necessary information on key stocks, which will help you in making well-informed investment decisions.
Quick and safe Investment experience
Our state-of-the-art and secure trading platform will help you invest in stocks through your buy on dips strategy with ease providing you with comfortable investment experience.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.