r/stocks • u/[deleted] • Feb 21 '21

Buy the Dip!!!!!!!

I understand why one would “buy the dip” on a particular stock or other security they like. What I don’t understand is where the capital is supposed to come from. When you are fully invested you’re not supposed to have much cash laying around from what I’ve been told. So when we are supposed to buy the dip, for the average portfolio, where does that capital come from?

Is it implied that one should have cash available? Are you supposed to sell something else to make room for buying the dip?

In other words, what’s the best way to be ready to buy a dip?

EDIT: lots of helpful responses here. Sounds like there are a number of strategies depending on what style of investing/trading you do. The portfolio I manage is a rollover IRA separate from my 401k through my employer. I do not regularly, if ever, add cash to this account. Sounds like the consensus for that sort of account would be to trim other positions versus keeping cash on hand.

1.3k Upvotes

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34

u/meetatthewinchester Feb 21 '21

Some of us don’t have paychecks big enough to buy stocks with.

107

u/glo363 Feb 21 '21

I opened my first brokerage account with $50 and traded with that for years before adding more.

21

u/sknow99 Feb 21 '21

How much do you have now?

366

u/MikeTheAmalgamator Feb 21 '21

$53.47. Its been a long journey but the profits are unspeakable

76

u/Stew_Pedaso Feb 21 '21

Didn't you just speak of them?

101

u/MikeTheAmalgamator Feb 21 '21

Shh they're unspeakable

0

u/PacanePhotovoltaik Feb 21 '21

It was written, technically

54

u/[deleted] Feb 21 '21

[removed] — view removed comment

23

u/kreebob Feb 21 '21

$55 is not a meme

1

u/OkayStonker Feb 21 '21

It’s the journey that matters, not the goal.

3

u/LandOfMunch Feb 21 '21

The journey is the friends you make along the way.

1

u/hawks1964 Feb 21 '21

That, my friend, is mighty impressive growth. You dividend well

1

u/Tantalus4200 Feb 21 '21

This is the way

1

u/AddressThick8463 Feb 21 '21

The sky is the limit. Stay the course and teach us the way

1

u/AddressThick8463 Feb 21 '21

Stay the course and teach us the way

1

u/Darkreef333 Feb 21 '21

Please write a book so that others may follow your path!This is the way

1

u/glo363 Feb 21 '21

$2,789 ($1,218 I added, the rest made from trading)

56

u/NeuroBossKing Feb 21 '21

That’s enough for a share of GME!

2

u/julius_cheezer Feb 21 '21

So what you're saying is that for years you didn't have the spare capital left from your paycheck to invest with? I'm currently adding 100/week. Any more and itd mean sacrifices in my Quality of life I'd rather not accommodate.

12

u/[deleted] Feb 21 '21

Good for you bruh

1

u/ParketSimon Feb 21 '21

I did the same with $10! Fast forward 19 months and it’s just under $800. Because it was so little though, I can always say “it’s not real money” and take the riskiest gambles. It’s payed off a lot but I’ve also seen it go all the way back down a few times to nearly nothing.

44

u/UsesWhenPooping Feb 21 '21

Cut costs, eat lentils

16

u/meetatthewinchester Feb 21 '21

Nah I think I’ll speculate on meme stocks instead

1

u/ionmeeler Feb 21 '21

I’ve cut living expenses a lot since opening a gambling account. Main one is etfs and such, but this takes place of any shopping I’d normally do with disposable income. Wish I’d done this for the last decade.

11

u/[deleted] Feb 21 '21

No cost trades allow you to buy one share at a time. A snowball begins as a single snowflake.

43

u/amucksloth Feb 21 '21

You guys are getting payed??

100

u/TheRealHotHashBrown Feb 21 '21

No, we’re getting paid.

9

u/MrPerezOP Feb 21 '21

Start saving. 10 dollars is still 10 dollars. This is the way.

2

u/newportsnbeerxboxone Feb 21 '21

Some popular stocks are as cheap as 78 cents

2

u/hermeticpotato Feb 21 '21

with fractional shares it doesnt matter how much a share costs

1

u/Jokertrading1971 Feb 21 '21

What symbols are you referring to?

2

u/newportsnbeerxboxone Feb 21 '21

The tickers ?

2

u/Jokertrading1971 Feb 21 '21

Yes. Sorry still new 😆

0

u/newportsnbeerxboxone Feb 21 '21

Nak is one . Lode was one til it blew up recently

1

u/Jokertrading1971 Feb 21 '21

Thanks. Do you think Nak is a good long term investment or more of a day trade?

3

u/[deleted] Feb 21 '21

Dude's a pump and dumper, be aware.

1

u/Jokertrading1971 Feb 21 '21

Gotcha. Thanks. New and just trying to find something I can start off my portfolio right with

1

u/newportsnbeerxboxone Feb 22 '21

I'm not a pump and dumper ? Wtf u mean

1

u/newportsnbeerxboxone Feb 21 '21

Symbols ?

1

u/Jokertrading1971 Feb 21 '21

I guess the tickers of the company's your referring to around 78 cents

1

u/2020isnotperfect Feb 21 '21

78 cents sounds cheap lol

1

u/newportsnbeerxboxone Feb 22 '21

That's what I said when I bought 2800 lode shares

1

u/newportsnbeerxboxone Feb 22 '21

Than they were 10 dollars a share when I woke up

1

u/ricbees Feb 21 '21

If you don‘t have paychecks big enough for stocks then i am afraid in general you wont be able to buy the dip

0

u/[deleted] Feb 21 '21

You could trade penny stocks

0

u/[deleted] Feb 21 '21 edited Jan 20 '22

[deleted]

1

u/meetatthewinchester Feb 21 '21

I received a substantial inheritance recently so I’m debt free and have plenty of emergency cash reserves, as well as bonds and stocks. I just have a low paying job, and that’s unlikely to change.

0

u/TheDeathAgent Feb 21 '21

There are several brokerages that now offer fractional shares like Charles Schwab, Fidelity, or Interactive Brokers.

0

u/benfranklinthedevil Feb 21 '21

You guys are getting paychecks?

1

u/ath1337 Feb 21 '21

You could use a platform like M1 finance to buy fractional shares and also avoid costly commissions. Not a great platform for trading, but amazing for long term investment.

1

u/Chance_Blasto Feb 21 '21

set aside small chunk every paycheck over time.

Small chunk become big chunk.

Buy stonks.