Buy the dip is a valid trading strategy and it has worked well over the last couple of years, so is there any difference this year or this dip? The main difference this year is that the indexes are going now where? We have seen big dips and big rallies but overall the markets are stuck in a sideways trend.
The other day I was asked: what is the difference between swing trading and investing? The short answer is: the time horizon. When you invest, you are holding stocks for a longer time period, usually several years. You speculate that “Your share” will increase exponentially in value over the years. As a result, you expect a high return. Dividend payments are often taken in to consideration when investing as they add to the return.
In Summary growing a small portfolio takes time, dedication and is not without work. If trading is something you are keen to learn and enjoy doing then it is not so much work as it is enjoyable and interesting. Do it yourself investing can be rewarding both from the satisfaction of watching your assets grow and learning different strategies in order to enhance that growth and protect your capital.
Many people who want to learn how to trade the stock market ask me “please teach me a trading system that does not lose money when the market goes down!”