I like to remind my followers that the market trades in waves. I know it gets a bit repetitive, but it's a rule that traders need to learn! Too many traders believe that once a rally begins, it's just a straight line to the next high price. But that's not at all how it works. There will be retracements (temporary price dips) along the way. The price undulates from high to low within an overall positive trend.
You've undoubtedly heard a lot of experts and analysts encourage you to "buy the dip." But it's a bit more nuanced than that. Many gurus, in my opinion, overlook a critical component of the trading puzzle. Rather than focusing on the dips, we should focus on the U-turns that follow those downturns.
We have no way of knowing if a price drop will genuinely turn positive or continue to plummet if we don't look for a U-turn. If you're tired of buying dips, only to see the market continue to tumble, check out my trading info focused on accurately predicting future price movement. It will save you a lot of heartache and money!
