OPINION: Instead of buying the dip, savvy investors sell the dip and buy the rip, portfolio manager Jon Burckett-St. Laurent writes.
In 2020 alone, over 10 million new brokerage accounts opened and a vibrant ecosystem of financial media emerged to serve these new investors. FinTwit, TikTok financial advisors, Reddit forums, YouTube and blogs illustrate the array of resources available to guide and educate investors. Much of the content is impressive – far better than what was available two decades ago when I began my journey.
As such, many made buying the dip part of their mental model of how markets work. Most traders and portfolio managers under 40 grew up with this regime, and algorithmic trading systems have been trained on a decade of data suggesting BTD is an ironclad law. Consider these strategies instead Savvy investors holding diversified portfolios will realize there’s another way to BTD.
Buying dips could potentially work at time horizons of a day to a week if implemented well and with proper risk management. However, over longer periods, following the market’s trend generally worked better. In practice, BTD is usually implemented haphazardly, using margin or risky instruments, like leveraged ETFs.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
They said it: If you can’t beat ’em, buy ’emQuote of the week.
Read more »
Warren Buffet: I wouldn’t buy all Bitcoin in the world for $25, it has no valueBerkshire Hathaway (NYSE: BRK.A) CEO Warren Buffet has reiterated his stance against Bitcoin, maintaining that he cannot invest in the... Continue reading
Read more »
This Oprah-Approved Cookware Set Is Over $100 Off & a Must-Buy For Mother's DaySnag this Oprah-approved cookware set for Mother's Day that's now over $100 off for a limited time!
Read more »
The 7 Worst Things to Buy at Dollar Tree — Best LifeThe worst things to buy at Dollar Tree include electronics, frozen meats, vitamins, and more, as they could harm your health.
Read more »
'The Price is Right Live' is coming to N.J. for 6 shows: How to buy ticketsRandomly selected contestants will get to play Plinko, Cliffhangers, The Big Wheel and even the fabulous Showcase with a guest celebrity host
Read more »
Warren Buffett Won’t Buy All Bitcoins in the World for $25, Crypto Community RespondsThe notorious Bitcoin critic said he will not accept an offer to buy all the BTC in the world for $25.
Read more »