TRAPPER BREAKS DOWN HOW TO EXACTLY BUY THE DIP...THIS WILL INCREASE YOUR NET WORTH.....

what's good trappers it's your board of wall street traveling and y'all know my goal is to help the culture build well one shot at a time so right now what i'm gonna do is i'm gonna take y'all inside the trap house and we're gonna talk about why you shouldn't buy the dip come trout so listen i'm about to break this breakdown of all dimes for y'all y'all know what i do man so here's the essence of buying a dip the dip simply means anytime a stock decreases or declines that is considered a dip list you can't make your own definition of y'all the definition of a dip is anytime a stock declines or decreases that is a dip you can't be saying that ain't what i consider a dip trap that not no that is a dip now this is why i'm saying it's not so much as me telling you don't buy the dip it's knowing when to buy the dip because every time a stock decreases in price doesn't mean it's a sale so what happens is most time people get on tv they see the market is red yo trap the market is red it's a sale right now well the stock market only down one percent so you have to find where to sell that so here's the thing let's talk about it let's say you bought this stock right here xyz cat food at 100 after you did your valuations after you did your homework after you did your research you saw that this stock was worth 100 and you bought in so cool you bought that stock you watched that stock go up to 185 it went up to 185 you made 85 and then it went down from 185 to 175 in essence and by law from 185 to 175 is a dip is it it i get it that ain't a big enough dip trap but it's a deal so this is not on sale now if what if you say you know what trap i don't want to buy that 175. some news came out some sellers sold some shares it went from 175 to 165. now i'm hoping that you don't just get out of the stock completely but would you buy that 165 that's not a dip i mean that's a dip but is that a buying point if you bought it here at 100 so now what happens is let's say you did buy it at 165 or 175 let's say you did buy it at that price right and then it went to 150. so these are actual dips right here y'all i know trap that ain't a big enough dip that ain't what i'm saying what i'm saying is every dip isn't a sale yo so buying a dip you must understand how to strategically buy a dip because what you don't want to do is you bought it at 100 it got up to 185 it went to 175 you bought it went to 150 and you bought what you've essentially now done is took your initial cost basis the cost of what you bought it at the beginning you've now increased it to about 115 on 125. so your average buy-in price now isn't a hundred it's 125. so now you need the stock to go to 125 right at least 125 to try to recoup some of that what you really want to do is say yo if i bought it at a hundred which was the fair price i felt was good with it let me just wait till it go to 100. so here's the thing trap what if it never gets to 100 cool you don't have to buy charlie munger warren buffett some of the greatest investors of all time said the best thing you can do as an investor is be patient it's the best thing you can do as an investor be patient you don't always have to be active the objective of this game is for you to put your money in a vehicle and let the money work for you so let's go for it about so now i went from 185 it goes to 175 it goes to 165 and 9's at 150. hopefully you're not panicking hopefully you didn't sell your whole position thinking you bout to get out cause that's what most of you gonna do man i bought it at 100 it's down to 160. i'ma just sell it now i made 60 dollars right we're not thinking big enough here we're not thinking big enough so at 160 it now goes up to 170 again goes back up to 200 it goes back up to 250. now you like damn trap i should have bought more at 165 it went up today no you shouldn't have you got it at a great price at 100. let it ride there's 3 000 other stocks for you to be looking at let it ride let it keep making you money now let's say after one year it then went from 100 and it made it went to 250 it closes out at 250 at the end of the year let's say now after one year you did your homework you did your research and you say you know what it's now not worth a hundred it's now worth 175. okay cool it's a good price so now what you do is you take and write down xyz cat food stock it's now worth 175 dollars and now you know what you do you wait you wait you're making money the stock is showing that it's performing one of the things i've learned that the market will do is reward your patience the market will reward your patience the problem that a lot of you are having is you feel like you got to be active every day every time a stock does something you feel like you've got to do something i'm going to keep it 100 with y'all yo when i write my businesses down when i buy in i write it under buy-in i'm not even looking at them business no more unless something catastrophic happened in the market why because there's nothing that happened big enough to make me want to buy more i know it is i bought it at the price i wanted to buy that so i think when i tell y'all about buying a dip we technically need to understand that a dip is not what you wanted to be right we can't come up with rules yo i don't call this when it rains i don't call that rain i call that a sprinkle no it's rain water coming out the sky is rain it comes in different form rain sleet hail you can't rename that you can't give it a name you won't give it and then classify it as something else no buying a dip is essentially when a stock declines in price the art to this game is understanding at what point is the dip now a sale price and once we understand that part of the game we become certified wall street travelers man listen y'all i hope i get y'all some real game with that just now i hope we broke that down and gave you all some real understanding on exactly how to buy the dip right it's not so much as saying that the dip isn't a good strategy the best strategy is understanding when and how to buy a dip just because the market declines doesn't mean it's on sale we find sales when we understand the value of the underlying asset that's how we win at this game man it's your boy the wall street trapper and y'all know my goal is to help the culture build well one shot at a time wall street looks like us now y'all big trap

Channel: Wallstreet Trapper

Views: 380,918

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Id: zDMDkEPbktU

Length: 8min 24sec (504 seconds)

Published: Wed Sep 01 2021