Dip Buying

Dip buying means buying an asset after its price has fallen. In simple terms, dip buying happens when investors see a price drop as a buying opportunity. Dip buying is important because it can help markets recover after short-term declines. Investors may buy the dip if they believe the long-term trend is still strong or the asset has become more attractive. For example, if a stock falls after a small pullback and investors buy it because they expect it to rise again, that is dip buying. Dip buying is not always successful. Sometimes the price keeps falling, and the dip turns into a larger decline.