Money What Does it Mean to Buy the Dips?

19:24  12 january  2018
19:24  12 january  2018 Source:   The Motley Fool

Cosmic dust, not 'alien megastructure,' veils mysterious star

  Cosmic dust, not 'alien megastructure,' veils mysterious star It's been called the "most mysterious star in the universe," bigger than the sun and yet brightening and dimming in an odd way that suggested to some an alien megastructure might be circling it. But a study out Wednesday, compiled by more than 100 scientists who have been observing the star named KIC 8462852, puts the alien rumors to rest.

What does it mean to " buy the dip "? " Buy the dip " means pretty much exactly as it sounds. If you " buy the dip ", this means that you are planning on using weakness in a stock (or any asset for that matter) to lower your average price in a position.

What does "FX lot round turn" mean ? Why trade FX parlays over regular FX? Buying on a dip means to wait for the rate to make a sudden fall that is out-of-line with its longer trend, and buy it .

  What Does it Mean to Buy the Dips? © Provided by Fool

If you’ve been investing for some time, you’ve probably heard of people saying you should buy the dips. How much of a dip should you buy? A dip of 3%, 5%, 10%, 20%, or 50%?

Quotes in the article

Cineplex Inc

CGX

Cranberries singer Dolores O'Riordan's tragic last photo with boyfriend revealed

  Cranberries singer Dolores O'Riordan's tragic last photo with boyfriend revealed The Cranberries singer Dolores O'Riordan enjoyed a cozy New Years Eve with her boyfriend of two years weeks before she died suddenly at age 46. O'Riordan was found dead Monday morning at a London Hotel.Her boyfriend, New York-based musician Olé Koretsky, posted a photo on Instagram with O'Riordan on Jan. 1 with the caption, "NYE: take away, TV, pajamas."(Video provided by TODAY) Click to expand Your browser does not support this video require(["binding"], function (binding) { binding("wcVideoPlayer", "#video_player_587cb21e-a619-4e74-9096-bd6142134d06").

Buy the dips means "I don't need my money, please take it from me." I'd say I've probably done a poor job with the IRA's (need to quit) as I have tried to wait for larger dips (5-10%) that have never come, or come and go so fast that I

If you?ve been investing for some time, you?ve probably heard of people saying you should buy the dips . How much of a dip should you buy ?

34.01
+0.40
+1.19%
S&P/TSX Composite

0000

16,321.33
+34.39
+0.21%
S&P/TSX Venture Composite

ISPVX

881.86
-7.65
-0.86%
S&P TSX 60

TSP60

968.21
+1.55
+0.16%

It depends on a lot of things. The company in question should be fundamentally sound. That is, you should have determined that it’s a quality company to invest in.

Moreover, depending on the type of industry the company is in, investors might require a bigger or smaller dip from the stock. It’s normal for stocks to move up or down as much as 3% on a given day. When it’s earnings season, stock prices can be even more volatile.

Most importantly, investors should consider the valuation of the company. If a stock is overvalued, and it had bad results in a quarter or multiple quarters, the stock will be hit hard.

Delta's profit dips 8 per cent but tops Street's expectations

  Delta's profit dips 8 per cent but tops Street's expectations <p>Delta Air Lines reported that fourth-quarter profit slipped 8 per cent, but the results still beat expectations as average prices for passengers continued to creep higher</p>DAL

A plan to buy the dips also requires that the investor knows when to sell. A bargain purchase price will not often do an investor much good unless he or she has a plan for what’s called profit-taking.

What does skinny dipped mean ? skinny dip is when your swimming naked in the pool or bathe naked :) To swim naked. The term most often used is 'skinny dipping .' One usually says, "We went skinny … dipping ," as opposed to, "We skinny dipped ."

An example

Take a look at Cineplex Inc. (TSX:CGX). The stock is nearly 35% lower than it was a year ago. In 2013 to 2017, the stock was trading at high multiples, but it wasn’t growing at a high pace. Perhaps buyers at the time felt they were paying up for quality. However, with the correction that the stock has had, it indicates that growth rates are important, too.

Going forward, Cineplex’s growth can improve. The company is investing away from the movie theatre business, in which it has a leading position in Canada. If its investments in The Rec Room, Playdium, and Topgolf pay off, the company could experience higher growth.

Can Cineplex stock dip further from current levels? Sure, it can. A part of what affects dips or corrections is psychology. Since the stock has been dragged down so much lately, the negative sentiment can continue to weigh on the stock. Cineplex needs to show results before the stock can turn around.

In the coldest village on earth, eyelashes freeze, dinner is frozen and temperatures sink to -88F

  In the coldest village on earth, eyelashes freeze, dinner is frozen and temperatures sink to -88F Life in this Siberian village, where temperatures plunged to as low as -88F this week, is constant negotiation with the cold.Eyelashes freeze; frostbite is a constant danger; and cars are usually kept running even when not being used, lest their batteries die in temperatures that average minus-58 degrees Fahrenheit in the winter, according to news reports.

Buying the dip means buying stock when the price reaches a low, when the stock experiences a significant drop in price. Buy The Dip Theory. Two concepts that support buying stocks on dips are reversion to the mean and market sentiment.

What does skinny dipped mean ? skinny dip is when your swimming naked in the pool or bathe naked :) To swim naked. The term most often used is 'skinny dipping .' One usually says, "We went skinny … dipping ," as opposed to, "We skinny dipped ."

The fact is, the stock is more attractive than it was a year ago after the correction. And it’s a decent place to start building a position at a ~5% yield if you have an investment horizon of at least three years.

Investor takeaway

The idea of buying the dips is that you buy a stock when it has declined so much that you find it attractive and believe it will recover to higher levels.

What’s more important than buying the dips is to question the growth prospects of a quality company and determine if it’s priced at a good valuation.

5 stocks we like better than Cineplex

When investing Guru Iain Butler and his shrewd team of analysts have a stock tip, it can pay to listen. After all, the newsletter they began just three years ago, Stock Advisor Canada, is already beating the market by 9.6%. And their Canadian picks have literally doubled the market.

Iain and his team just revealed what they believe are the five best stocks for investors to buy right now... and Cineplex wasn't one of them! That's right - they think these five stocks are even better buys.

See the 5 stocks

*returns as of 5/30/17

Fool contributor Kay Ng owns shares of Cineplex.

Watch: Maple Leafs honor late Johnny Bower in pregame ceremony .
Watch: Maple Leafs honor late Johnny Bower in pregame ceremonyBower passed away last week at the age of 93. The goaltender spent 12 seasons with the Leafs, winning four Stanley Cups.

Source: http://ca.pressfrom.com/news/money/-59627-what-does-it-mean-to-buy-the-dips/

—   Share news in the SOC. Networks

Topical videos:

This is interesting!