My investing muse - 3 days rule for "buying the dip" (03Feb2022)
In the market, there is a " 3 days rule " that advises the following: If a stock suffered a big drop in a single day (high single-digit or more in percentage %), it is usually advised to consider buying after 3 days. I have recently recommended a BAD (buy AFTER dip) trading strategy over buying the dip (BTD). this may help us to avoid catching a falling knife instead. with $Facebook(FB)$ dropping 22% post trading hours, the impact has spread to other social media businesses like $Twitter(TWTR)$ , $Pinterest, Inc.(PINS)$ & $Snap Inc(SNAP)$ which posted post-market hours drop of over 8%. this is likely to continue for a few days and let us monitor. it is better that we make lesser profits than buying a price that is still falling. for those who are using technical charts, let us set price alerts at the support and resistance levels using 1 Day chart for price action. if we are prudent and patient, we can bet...