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#MyTradingStyle Buy the dip" is a trading strategy where investors purchase an asset after its price has temporarily fallen, anticipating a rebound. The core idea is to "buy low and sell high," capitalizing on short-term market corrections within an overall uptrend. This approach aims to lower the average cost of an investment and potentially increase returns when prices recover. However, it carries risks, as a "dip" can sometimes signal the start of a prolonged downtrend, rather than a temporary fluctuation, leading to further losses. It requires careful analysis to distinguish genuine opportunities from falling knives.
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