Stop being obsessed with 'buying the dip'—what you think is low might just be halfway down
In the crypto world, many people always talk about 'buying the dip.' When they see the market drop, they want to jump in, fantasizing about picking up a bargain, and gamble on a rebound. But have you ever thought that this operation seems smart, but is actually extremely dangerous?
You don't know where the bottom is
For example, if Bitcoin drops from 100,000 to 98,000, many people excitedly shout: "It's stable, it's holding, buy the dip!"
But what if it drops to 70,000? Would you dare to average down? Do you still have the bullets?
The bottom is not defined by your shouting; it's not just about 'it has dropped enough' to rebound. A true bottom is usually a point of panic, liquidation, loss-cutting, and nobody cares—it's not just a small fluctuation that you think.
Buying the dip is easy, but getting trapped is even easier
The idea of 'building a position at the bottom' is not wrong, but the premise is that you can withstand being down 30%, 50%, or even 70%.
Many people's way of buying the dip is to go all in at once, and when it drops, they are stunned. They don't cut their losses; they keep adding as it drops, until they lose faith completely.
3. The truly smart approach is to ride the trend
Instead of blindly buying the dip, following the trend by buying low and selling high, or gradually building positions at key support levels, is the real strategy.
When the price stabilizes above key support, showing signs of a bottoming out, a rebound with volume, and a bullish moving average arrangement, then consider entering—the win rate will be much higher.
4. Capital management is fundamental to your survival
You are not a god; you can't guess the bottom, nor can you outplay the big players.
But what you can do is—control your position size, keep some bullets ready; set stop-losses to prevent deep drawdowns; build positions gradually to lower risk.
Don't just go 'all in buying the dip' at every opportunity; that's not investing, it's gambling.
In conclusion
The ones who truly make money are not the ones who guess the bottom most accurately, but those who can hold on, see clearly, and move steadily.
The real bottom is when the market falls to a point of despair, and what you need to do is not to blindly buy the dip, but to maintain your rhythm, wait for the trend to clarify, trade logically, and survive with discipline.
Live long enough, and you will have a bull market to profit from.
Follow me, and I'll take you through the bull and bear markets;