Not Dip Buying (Yet)

Not Dip Buying (Yet)

Though it can be profitable, I’m not dip buying yet!

Over the last few years I have been eager to buy most dips. But this pullback feels a bit different. ┬áSo I’m not dip buying (yet). And…

There are good reasons I’m not dip buying (yet)!

Recently on StockIdeas.org we’ve looked at Corning (NYSE:GLW), Brooks Automation (NASDAQ:BRKS), Genworth Financial (NYSE:GNW) and even little Infinera(NASDAQ:INFN). In every case: There’s a clear theme…

Do you know what it is?

The Reason I’m Not Dip Buying (Yet)…

The reason I’m not deploying my cash position into this market correction (yet)… is because …

While the fundamental ideas supporting my watchlist stocks are still robust, the technical risk to reward is not ideal. You can see what I mean in the dip buying video below on “why I’m not dip buying”

In short: The chart setups just don’t look right (yet). Plus it’s nice outside…

Not Dip Buying in The Summer Time

Yes, it’s a wall street cliche thoroughly debunked. But “Sell in May And Go Away” is on the mind of every other trader. Especially as the markets start to take a hit this time of year. You’re familiar with a self fulfilling prophecy, right?

I’m not too much for seasonality. But it’s hard not to suggest this: Our economy is third-and-fourth-quarter-centric. Now I don’t know about you, but…

A lot of my consumption occurs in and around in the colder months. In summertime I just wanna sit outside and look at the people. I’m a simple guy, after all.

So maybe I’m superstitious for being suspicious of dip buying in summer time, but it’s just another layer of the onion, know what I mean?

Patience First, Dip Buying Second

One of the biggest trading mistakes I make is to dip buy (and subsequently sell) much too quickly. I now do my best to wait for stock price stabilization, but it’s a (costly) learning process. If you regularly buy the dip, you might know what I mean. So here’s the thing…

You must wait for a safer entry point. Even a trending winner can shake you out if you buy after the first down day. Be patient. I’m no expert financial adviser, but I can tell you that right now, i’m not dip buying (yet) in any of my stock ideas.

Here’s why…

“I’m Not Buying The Dip”

[VIDEO]

But enough about me…

Are you buying this dip?

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