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stocks keep dropping and you are going
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to hear people say buy the dip buy the
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dip what buy what dip this thing keeps
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dipping the stock market keeps falling
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so I'm buying the dip today and it keeps
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dipping tomorrow and I'm actually not
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buying the dip I'm throwing my money
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away by investing in the stock market
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right now I'm catching that falling
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knife hey guys it's Aman from RR journey
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and on today's video I am going to help
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you guys with this issue because a lot
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of you guys are seeing the stock market
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go down and you are hearing Talking
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Heads on these news networks talking
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about Bu The Dip when you are probably
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sitting at home thinking well what does
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that really mean so buying the dip is an
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investment strategy where you purchase
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stocks after their prices have dropped
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hoping they'll recover and go even
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higher in the future the logic is simple
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if a stock was worth $100 yesterday but
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now it's $80 today you might see this as
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a discounted buying opportunity and so
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you are buying the dip but here's the
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catch how do you know if this dip is
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temporary and is a buying opportunity or
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just the start of an even bigger drop
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what if you buy now and it falls another
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10% another 20% what do you do that's
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why buying the dip blindly is risky
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instead instead you need a strategy a
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structured way to enter the stock market
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that doesn't rely on guessing the bottom
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so on today's video to help you devise
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your own strategy I'm going to talk
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about four strategies to help you safely
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buy the dip and an additional strategy
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which we use which we think is the
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ultimate way to invest in the stock
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market in a situation like this so let's
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start with the numbers how bad is the
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stock market right now since the stock
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market peaked in January of 2025 the S&P
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500 is down more than 10% the NASDAQ is
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down almost 15% and when you look at
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individual stocks Tesla is down over 50%
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losing $700 billion in its value and
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some of the other Tech heavyweights the
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fan favorites like Nvidia Nvidia is down
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almost 20 5% meta is down over 20% Apple
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down almost 20% Amazon 20% Microsoft 20%
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all these Tech heavyweights that make up
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a huge part of the stock market are down
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more than 20% now these numbers are ugly
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but is this the bottom it could or it
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couldn't be we have seen the stock
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market Fall a lot more in the past so
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how do you invest in this type of Market
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well this brings us to the strategies
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that advanced investors use when they
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are investing at a time like this the
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first one is the percentage-based buying
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strategy where you buy every x% drop in
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other words instead of guessing the
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bottom this strategy involves buying a
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set amount every time the market drops
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by a certain percentage for example if
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the S&P 500 is down 5% you buy a small
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portion if it drops another 5% you buy
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another small portion if it falls
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another 5% you increase your purchases
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this approach helps you take advantage
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of falling prices without going all in
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too early if the market rebounds sooner
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than expected you've still built a
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position the next strategy is the moving
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average strategy rather than relying on
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emotions this strategy uses technical
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indicators like the 200 day moving
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average to decide when to invest in the
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stock market so if a stock or an index
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Falls below its long-term moving average
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it signals a possible buy opportunity
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this method helps you filter out
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short-term noise and it gives a
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data-driven approach to buying the dips
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many professional investors watch these
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moving averages closely to determine
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whether a market is oversold or if if a
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deeper decline is underway the next
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approach is called the staggered Buy in
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approach with this approach you break up
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your investments into smaller bites over
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time so let's say you have $10,000 to
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invest instead of investing it all at
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once you put in 2500 now while the
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market is down if it drops further you
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invest another 2500 in a month and you
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repeat this process giving yourself
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flexibility if the market continues used
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to fall this way if the market recovers
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quickly you are already invested but if
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it keeps falling you still have cash to
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take advantage of even better prices the
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next approach is what I like to call the
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fundamental value Buy in where you are
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only buying quality companies that are
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experiencing a temporary dip this is
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what Warren Buffett likes to call Value
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investing and so let's face it not all
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stocks are going to recover some will
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never bounce back and it is a time like
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this when companies are being more
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scrutinized that this becomes more
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apparent the companies that are built
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completely off of speculation when
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investors start to look at the
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fundamentals and the financials of those
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companies they realize that these
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companies are built on a house of cards
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but investors that are looking at
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companies and they are finding companies
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with strong B balance sheets these
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companies are the types of companies
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that you want to invest in at a time
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like this you see this strategy focuses
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on buying great businesses at a discount
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rather than buying just because a stock
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is down so you want to do this by doing
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three things before you consider buying
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a stock the first is look for companies
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with strong earnings low debt and
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competitive advantages the second is
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avoid companies that are struggling with
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fundamental business problems third
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focus on sectors that are likely to
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rebound strongly when the stock market
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recovers for example if apple or Nvidia
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Falls 20% but their core businesses are
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still strong that could be a buying
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opportunity but if a company's
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fundamentals are crumbling the dip might
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not recover I think Tesla is a prime
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example of a company that has
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fundamentally changed it is a company
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that at one time had a great advantage
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in the market but with increased
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competition with sentiment surrounding
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the product changing significantly will
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Tesla recover it's down right now about
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50% and they are not selling a lot of
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cars like they used to so this company
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is going to be struggling to recover now
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all of these strategies that we have
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talked about there is one strategy that
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is kind of floating around all of these
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and it's the one that we like to use
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when we invest in the stock market
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it's the same one that we have used our
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entire investment career we have a
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strategy that involves dollar cost
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averaging and lump summing you see our
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idea is to invest in the stock market
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sooner rather than later so whenever we
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have a large amount of money that is
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available to invest in the stock market
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we usually invest it sooner rather than
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later by lumps summing it into the
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market but whenever we are receiving
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income on a weekly or a monthly basis we
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invest that money by dollar cost
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averaging it into the market you see at
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a time like this where there is a lot of
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volatility people get nervous first of
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all let's face the bottom line no one
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can predict the direction of the market
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in the short term but historically we
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have seen the stock market always
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recover and go higher my advice to you
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is you should do whatever you feel
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comfortable with but keep in mind that
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you will be very anxious if you are
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watching your portfolio at a time like
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this and so if you do have a large sum
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of money and you are interested in
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investing in the market right now as a
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lump suum rather than dollar cost
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averaging then my recommendation is to
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do it and walk away don't think about it
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anymore because most people fail at lump
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suum investing because of the anxiety
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involved in it they think they have a
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highrisk tolerance and so they say I
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have $10,000 I'm going to put that
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$110,000 in the stock market but when
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they see that 10,000 go to 9 to8 they
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get nervous pull it out and they've lost
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money because they didn't stay the
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course they didn't stay in as a
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long-term investor but a long-term
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investor can feel completely comfortable
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lump summing $10,000 in the market and
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watching it fall all the way to 5,000
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because they know over the long term
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that money is going to recover and go
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higher and so if you are a person that
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will be anxious about seeing a large sum
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of money that you put in the stock
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market go up and down then lump summing
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is probably not for you you are probably
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better off with one of these other four
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strategies that are a take on dollar
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cost averaging and dollar cost averaging
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is a great way to invest in the stock
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market because you are investing a fixed
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amount of money every week every month
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whether the market is up or down it
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really Smooths out the purchase price
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over time avoiding emotional investing
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and it also ensures you're always taking
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advantage of Market declines without
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Panic selling or timing mistakes history
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has proven that staying in the market is
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more important than timing the market
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since 1926 the S&P 500 has recovered
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from every single bare Market eventually
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hitting new highs so the bottom line
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instead of waiting for the perfect
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moment to invest in the stock market
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focus on consistency keep investing stay
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disciplined and let time do the work I
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hope that this video has given you guys
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food for thought when you are developing
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your investment strategy at a time like
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this and so if you like this video
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please give it a thumbs up subscribe to
00:10:42
our Channel and join the journey
00:10:54
[Music]
