buy the dip

English

Alternative forms

• buy the dips

Etymology

Referring to the "dip" (fall) in a stock's market value, which allows an investor to purchase its shares at a cheaper price and possibly earn better gains if the stock rebounds to its previous high.

Verb

buy the dip (third-person singular simple present buys the dip, present participle buying the dip, simple past and past participle bought the dip)

1. (slang, finance) To purchase a financial asset after its market value drops.
   • 2009, Ken Wood, Trade the Patterns: The Revolutionary Way of Trading the CCI, Traders Press, →ISBN, page 31:

     Many traders are told to “buy the dip and sell the pullback” but not exactly when to execute this. It has been left up to the trader to enter when he or she feels the time is right.

   • 2009, Thomas H. Kee, Buy and Hold Is Dead: How to Make Money and Control Risk in Any Market, John Wiley & Sons, →ISBN, page 35:

     During upward-sloping cycles in the Investment Rate, a long bias with proper diversification should result in positive portfolio returns, without drawn-out setbacks, if investors are willing to buy the dips, especially the big ones, at all times.

See also

• pullback
• buy low, sell high