Buy on Dips, Sell on Rallies

I know many readers, who understand the meaning of Buy on Dips, but they don’t know how exactly that means. Generally, any analyst after doing its research comes to a point where he/she had a view that broadly market is going to rise or going fall, based on that it gives a suggestion to their clients.

When we say Buy on Dips means, analyst has a Bullish View and stock has potential go much higher from current levels. In that case, whenever market falls or correct, that particular downfall should be utilized to accumulate the stock which were talked about. For example, Nifty is trading near 5800 levels and it has a fare chance to move higher in coming future, but there could be a chance that in nearest future Nifty may correct towards 5700-5600 levels. Now, in above scenario if you are not pure swing trader than you should utilize this correction to accumulate Nifty and Hold for higher levels to achieve. May be Nifty might test 6000+ levels again, in that case Buy on Dips gives you superior returns.

buy on dips, sell on rise by way2profits

 

When we say Sell on Rallies means, analyst has a Bearish View and stock has potential go lower from current levels. In that case, wherever market rises to some extent, that particular rise should be utilized to Sell or Book Profit in that Stock or Index. For example, Nifty is trading near 5800 levels and it has a fare chance to correct or witness downfall in coming future, but there could be a chance that in nearest future Nifty may move higher towards 5900-6000 levels and analyst believes that now there is limited upside and downside potential is higher. Now, in that case, trader can utilize any rise as a selling opportunity in Nifty and hold for the lower target

Above concept should be utilized with proper game plan, because if you don’t know where the turnaround point is, than there is a chance that you may go bust. So, it is always advisable that don’t hear and trust any media news, unless and until you closely follow them. Because, it is their duty to give you advice based on current market scenario and development, and which may be good for day, but once turnaround points come, they are not going to come again on News channel and going to give you advise that please exit from your position. So rely, only where you get consistent view, like we give at Way2Profits.

 

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