My Investing Muse

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...

  Buy the dip (BTD) is a term that has come up recently with the 2022 market having a redstart.  when we buy the dip, it is with intent to sell at a profit when the stock price recover as the market does swing between overbought and oversold regularly. this seems like a good strategy. I would like to suggest for us to consider another strategy. it is not just about  buying the dip , but let us consider  buying after dip (BAD).  for investment, we understand that the longer the timeframe, the fewer false signals we will get from the charts.  for us to be successful, let us consider the following: 1. qualify the company's financial fundamentals - improving profits, balance sheet, free cash flow and EPS. 2. consider using a 1 Day or 1 Week chart to ascertain the reversal of the downtrend. 3. company has durable competitive advantages 4. good management 5. good margin of safety that is buying the stock at a good discount....