Buying the dip can be a very risky strategy, causing an increased risk to the trader if he averaged down.
You can never know how DEEP the dip can keep dipping, and you might enter into a TRAP.
I always recommend traders to enter with momentum and exit when the momentum is starting to reverse.
This is what many legendary traders like :
Jesse Livermore and Nicolas Darvas and Richard Wyckoff meant when they said: "Let the market tell you what to do, the market is always right"
Hope this will help some young traders develop good habits :)
Give it a like so it will be saved on your cherished pearls of market wisdom.
You can never know how DEEP the dip can keep dipping, and you might enter into a TRAP.
I always recommend traders to enter with momentum and exit when the momentum is starting to reverse.
This is what many legendary traders like :
Jesse Livermore and Nicolas Darvas and Richard Wyckoff meant when they said: "Let the market tell you what to do, the market is always right"
Hope this will help some young traders develop good habits :)
Give it a like so it will be saved on your cherished pearls of market wisdom.
🏆 There is only #1 way to trading
🧪 Feel confident with science and logic
💰 Trade your way to success and freedom
🧪 Feel confident with science and logic
💰 Trade your way to success and freedom