Buying The Dip (Simple Trading Technique)

[sadmaster]

[Buy The Dip]
- Buy the Dip - is a slang phrase referring to a practice of purchasing coins following a decrease in prices. After a significant dip in coins and alt coins, investors most likely increased their stock of different coins to gain advantage from what is seen as a potential upward trend.

- This is a strategy is used by some investors and traders when the market suddenly drops and reaches a very low point or what they call a Dip. Some also call this Discounted Coin/Token Sale.



Why to buy at Dip?
-The idea of buying the Dip is based on the movement of price in the market. By purchasing coins after a dip, investors are essentially going at a low entry price or at a discounted sale price. Like all trading strategies, buying the dip is not a sure thing, because some coin price drops are due to negative changes underlying the company's fundamentals of the Coin. Example of this is the investors who followed this strategy on the coin BITCONNECT(BCC). The coin popped earlier this year because the coin is found to be a fraud after they pulled the GREATEST EXIT SCHEME IN CRYPTO CURRENCY. Buying the dips seems to work when the market is oversold.

I would like to end this with a quote saying "A little learning is a dangerous thing" Hoped this helped you

[SaoAccel]

Buying the dip is not always recommended because some coins go down not because of market inflation but they go down when their company has negative outlook in the community. This happens sometimes when FUDs spread in the community and attack some coins.

[illiki23]

This is actually a relatively sane strategy.

What we used to do was find pumps and pump groups who were active not so we could participate in the pump but take advantage of the post pump dip.  While we are making money off of this unfortunate event it actually is helping to stabilize the coin while being very profitable.  (and easier to get in on than the pump itself)   If the coin prices doesn't go low enough to trigger the bot then so be it, there is always next time.  The problem then is estimating when to buy in post-dip.

[loicuagio1979]

I read your thread by chance when I was given a merit by @athanz88. So, i would like to discuss something as i am a trader
How do you know that “the market is oversold” instead of breaking a new bottom? And how do you know the “quick dip” shall not keep falling? And what is your determination at that time? In case you are wrong when “buying a dip”, how many percent will you cut loss and close your status (exit position)? Too many traders don’t really know how to react in some specific cases (me too, lol); they are just predicting by their limited experience only. I can say, the crypto market is the game of odds, it means that everything is just based on relative truths. I think you're a trader too, so i wanna repeat some sentences which smart traders often use:
Smart traders never buy a dip, they buy bottom areas
Smart traders never sell at peak, they sell high price area only
Smart traders never guess, they buy what they see, never buy what they think
And so on...

[yanto@1977]

[Buy The Dip]
- Buy the Dip - is a slang phrase referring to a practice of purchasing coins following a decrease in prices. After a significant dip in coins and alt coins, investors most likely increased their stock of different coins to gain advantage from what is seen as a potential upward trend.

- This is a strategy is used by some investors and traders when the market suddenly drops and reaches a very low point or what they call a Dip. Some also call this Discounted Coin/Token Sale.



Why to buy at Dip?
-The idea of buying the Dip is based on the movement of price in the market. By purchasing coins after a dip, investors are essentially going at a low entry price or at a discounted sale price. Like all trading strategies, buying the dip is not a sure thing, because some coin price drops are due to negative changes underlying the company's fundamentals of the Coin. Example of this is the investors who followed this strategy on the coin BITCONNECT(BCC). The coin popped earlier this year because the coin is found to be a fraud after they pulled the GREATEST EXIT SCHEME IN CRYPTO CURRENCY. Buying the dips seems to work when the market is oversold.

I would like to end this with a quote saying "A little learning is a dangerous thing" Hoped this helped you

I believe everyone use this strategy to make profit but the different is, which dip bottom to start buy, first, second or third?. Look's simple but find the top dip area also have different method, most people use technical and some people read from news. As long they can keep patience to wait price comes up and a good money management, this strategy will always create income.

[Papcio77]

Yes, i have no skill in trading such reading graphs, margin,
Analizing candle sticks and etc. But buying at dip is a big technique. This idea is needed for a trader, this is how we can get profit. Buy low sell high. This one will not fall on losses just wait to reach the price above your buy order

[googs84]

Yeah the discounted price! A god phrase to mesmerize those times when whole crypto currency goes into the bloodbath and just few months ago we experienced something similar.

However to add on this, i would also suggest that when the dip occurs its not likely that all the coins will ever come back to the ATH or they will take soul out of your life until that really happens. So its better to watch out what we really buying at the dip and in what ways we are actually growing the portfolio for our advantages.

[schmeckles22]

how can you tell where and is the dip and if its not going to go lower?
also how to tell it will go up?

[BitcoinHodler]

the first thing you need to clarify is what is a dip really?

usually people think that just because price is lower than price of an hour, a day, a week,... ago that means it should be a "dip". but the "being lower now" is not enough to call that price a dip. it is a drop not a dip where you want to buy in it.
a dip which you are looking for to make a purchase is when price has dropped enough to be considered near the bottom and when you don't expect any more drop from it. otherwise you are buying during the drop and will lose money as the drop continues.
you also prefer to buy before the reversal. sometimes the dips last long because of the huge dump and also because there needs to be an accumulation so it is wise to wait and watch the signs of accumulation.

[cryptoman512]

I don't think you could always guess where exactly the dip is. You must need to consider other technical and fundamental factors to consider the point to reach it's price floor. It's a nice strategy but how can you spot the moment to buy at dips? That's the question, the same principle applies to the question "when to sell?" Where do you actually need to seel in order to maximize the profits?

[MachNotMark]

"Buy at dip" is very confusing terms, I can't understand at all.

[poodle63]

Buying the dip only works if there's no "real bad news" to that coin you want to buy, you learn from BCC, the coin doomed because it's from the beginning already a scam, it's a ponzi, a smaller fish will be eaten by bigger fish, but how with bitcoin? bitcoin is no ponzi, it's a modern currency, a currency of the future, it's not promising any ROI within certain time but instead, it exist just to revolutionize the current broken monetary system, that's the difference.

[danherbias07]

But that could also be the worse decision of your life. Anything invested in altcoins now seems to be a risk which is a problem most investors come into.

That is why hard caps are difficult to reach now. Thanks to those scams. They will eventually wait for that token to be release in the market and just do the trade there instead of investing in a token sale.
It could be more safer that way.

[zander09]

"Buy at dip" is very confusing terms, I can't understand at all.

You will buy if the price of coins are in the lower price or fallen.
Like buy low and sell high is the best strategy in trading to gain profits.

[V1saya]

The most difficult part here is when is really the right time to enter. Making it perfect is not easy though reason why some traders and investors are doing set of buy points in order to start accumulating down.

Bitconnect was an obvious ponzi and doesn't need technical analysis. Research for fundamental support is a necessity here in crypto market.

[brotherwood12]

my question as noob trader , how can we know the dip of the coin ? like when i think it the dip and the price still going down , can it called dip?

[richjohn]

Easier said than done. Is there any possible way to know whether coin has dipped? How to even figure out the entry point? Back in December when Ripple was at peak I bogiht it in dip for around 2.5$. I assumed it wouldn't go lesser than this. Within a week it went down to 1$ and I lost major money.
Xrp didn't reach that level ever again and I'm still waiting for the day I'll be able to recover my money.

[tunapa]

Thanks for this short explanation about buying the dip. I will Also like to add that buying the dip is a strategy that needs mastery because you can never tell when to buy at a dip unless you want to take the risk and hop in at a certain dip. Howbeit, buying the dip of good coins will give you rest of mind even if the price dips more, increase is certain to occur in no time. That's why we need strategy to buying the dip. There are different phases of buying the dips with your capital and sound analysis of the coin you want to trade . we all need to learn this.

[anjohyx]

People always call buying the dip, but it's really not easy, how do you know the tokens dip because of negative news or people dumping? It's not always work and sometime will let you miss the dip and regret, so don't always wait for dip because you never know that tokens will dip to which level

[jamesndungu1]

Buying the DIP is not as simple as people think and its not guaranteed to be successful, but it doesn’t take much skill or technical know-how to implement. Before buying the DIP Its advised to study the technical aspects such as moving averages, support levels, RSI, and volume to get a sense of how low a price might go and get a sense of when recovery is likely, Its  still generally better than FOMO buying the top or panic selling in a stagnant or bull market when the price pulls back (as it WILL pull back, crypto is volatile).