Exception: There are times when buying on the dip makes sense. First, if leading stocks are temporarily going down along with the entire market, you can buy these stocks at a bargain price. Just know that you may buy too early as stock prices continue to decline. In addition, if you are using short-term trading tactics and a leading stock suddenly plunges because the entire sector is going down, you may be able to make a quick profit if you buy on the dip and get the timing exactly right (but it’s difficult). These are strategies that require experience, and they can work for certain traders.
