here are the three tips to buy the dip successfully in this market condition usually the best time oh actually don't know if i want to reveal this is like one of the secrets okay these are some golden tips that not a lot of people talk about what's going on guys so today i want to recap some of my long trades and talk about the strategy behind buying the dip and why it's finally starting to work out quite well and i'm gonna talk about some key tips when you are trying to buy the dip successfully in this market we're not talking about buying the folding knife or holding onto your bags and also it's like freaking hot in vancouver alright so now that we got my hair out of the way let's finally dive into the market recap so if you kind of look at the market on spy we're finally starting to rally off the lows so if you think about it the long strategies on buying the dip would naturally only work once the market the overall market the s p 500 starts bouncing so it on these like really extended red days there's literally no point trying to buy the dip or going long on any of the stocks so that's tip number one always check the market sentiment so today the market you know had a decent balance the last couple of days were bouncing off the lows from the the rug poll from the fed meetings um but we're seeing some decent rally you can see we're up for continuously for one two three four days so when i see that happen i'm looking at a lot of what i call market stocks meaning the large cap stocks that follow the market quite closely so it has to be the large cap stock cannot be the small caps so that's your tip number two stock selection it has to be the large cap stocks that you're trying to buy the dip on because when it comes to small caps um their strategies and the loan strategy set up specifically it's a little bit more nuanced so we're gonna have to talk about that in another video so back to stock selection when you're trying to buy the dip you wanna pick the large cap stocks that have shown you at least on the daily chart that it has ability to bounce so if you look at nvidia which is one of the first stocks i started loaning today around 166 i was trying to hold on to potentially to 169 170s and higher um this one i only ended up catching about almost two points from 166 to 168. so you can see i'm bouncing this around the 166's area now if you look at draw a line on the daily chart you can see this whole 155 160 166 area on the daily chart if you kind of zoom out right here it's kind of like the bottom of the daily chart where the stock this stock has specifically in the past um shown that it can bounce from 160s all the way to 190. so we're talking about a potential of a 30-point bounce at least on a day-date chart i don't i don't think we're gonna get that in one day but for us day traders were trying to capture the balance for a dollar two dollars sometimes three or four or even more when the market really rallies so that's an important key takeaway stock selection large cap stocks that can actually bounce no trashy small cap stocks and uh of course the market sentiment you want to look at longing and buying the dips when the market started to bounce so this is the first trade i did alongside nvidia and this one i you know i did okay but i didn't time it that well because i want to show you the second one neo this one i timed a lot better now if you look at the intraday chart on neo and nvidia i know there are different sectors one's a chinese stock one is american stock but if you look at intraday it kind of has a similar chart structure because if you kind of look at both of them both of them gapped up overnight with a market nvidia gapped up from prior days closed 177 to 174s pre-market sold off to the 166 area i was looking at for the long for the bounce right you can see this thing sold out from you know like almost 10 points eight points to a downside before the bounce now for neo it's a very similar story if you look at the way it gapped up it gapped up from prior to this close 24 to 24 60 24 70. so a decent amount of gap up um and then this thing also sold off at the open so they both react similarly to the market so whenever i see like a market sells off happens after a significant gap up on the individual stocks usually the best time oh i actually don't know if i want to reveal this is like one of the secrets okay these are some golden tips that not a lot of people talk about so if you're still watching here make sure to hit the like button and comment down below by the dip so i will know that you are actually watching this and i'll make more recap videos with more of these golden tips in the future now the big difference so even though the chart and entries are long they are all long neo and nvidia even though on the surface they may look quite similar but what differs is the timing so you can see i went long around like this is what if you look at i know the dash choice is like really small but this is almost uh just above 10 o'clock 10 o'clock and this thing bounced from 166 to 169 and it pulled all the way back to 167 around this is what 10 30 to 10 40.

so you can see the big bounce on nvidia is actually around 10 30 to 11 o'clock right here you can see it bounced from 167 this is a big bounce to 170. now neil on the other hand i i'm saying that this is a better executed trade because the timing's better you can see this one actually executed around 10 30 and held it for the bounds from 23 all the way to 23 20s i sold some re-added back to full size around 23 tens and then sold it into 23 40s so my ultimate price target was actually 23 50 23 60 v area but i caught as close to 23 44 so that's that's pretty good too but the big difference here is the timing so there's something around about being 11 10 30 to 11 o'clock that is usually the golden time for bounces if you are loaning stocks and buying the dip right we're talking about buying the dip on the huge pullback that we're seeing right now neo you can see gap up sell off nvidia same thing gap up sell off so that's a golden time to buy the dip whenever you see the stock sell off after a huge gap up now that's not the same as buying the breakout buying the breakout is a losing strategy in this kind of market condition just just don't do it i know it worked well in 20 21 2020 um but you know if you buy the breakout in this kind of market in 2022 uh you know like eight out of ten times you're gonna get rock pole so that's the third golden tip and not a lot of people know about this is the 10 30 to 11 o'clock is the perfect timing um to buy the dip and on these are large cap stocks you can see it even on the stocks i showed it so i went long on neo and nvidia the socks i shorted are alibaba and chewy notice that my shoe entry is a lot earlier on than my lungs you can see i showed it alibaba from 120 starter i got a little bit chopped up here but ultimately added into the v1 bounce around 120s and down here 119s and shorted into the lows to 1 1780 and notice when i've covered all my shorts around here if you look at a time frame this is also 10 30 to 10 40. so that that's i covered everything here because i know that it's about to bounce so even though i didn't go long on alibaba the idea the concept is exactly the same right if you are a shoot seller you want to cover when you know the buyers are coming in so that's going to help you protect your profits if you are short now one more example here is chewy and notice all these stocks are in different industries they are all just large cap stocks so chewy same idea i only went short on the stock but the balance also only started to happen around 10 30 10 40. coincidence i think not so chewy this is also one of my favorite strategies but it's on the short side with when a stock is also gapping up on very thin volume after you know multiple days of a run a lot of times you see kind of like a rejection of the pre-market highs around 40 40s over here a little wick here i was actually late i got in around the 39 70s and this thing just fell off too and tanked um to prior days close so i covered some of it around 3890s and all of it around 38 20s the one thing i could improve on um this uh this short is to hold it all the way to 10 30.

kind of like what i did for alibaba so that would you know improve my profit ratio for this short setup so as you can see it's really beneficial to understand both long whether it's buying the dip or buying breakout and also shorting because you want to balance the two psychology right remember as a short seller you want to cover your shorts when the buyers are coming in and if you are a buyer you want to buy the stocks when the shorts are covering when the shorts are getting squeezed and that's just how the market works so just to recap on these three golden tips for buying the dip strategy that's working out really well in the current market so number one again market sentiment the market needs to be starting to bounce if you look at the s p 500 or the qqq it needs to show you a bottom on a daily chart and not a folding knife so if that happens if you see a folding knife do not go long second tip is a stock selection stop trading these are trashy penny stocks they might go up but they also might go down so you know whether they go up or sideways it's anyone's guess it's the large cap stocks that can show you historically they have a good chance of bouncing off the lows so that's tip number two tip number three is the golden time frame of 10 30 to 11 o'clock usually that 30 minute period um give or take is the best time to go long and balance the stocks so as you can see even though the market you know officially were in a bear market right now there's still money to be made going long and short and if you're trading with a small account make sure to watch my latest video on the best way to grow your account in 2022 if you learned a few things on my buying and shorting strategy make sure to comment down below by the dip and remember to hit the like button on this video especially if you want to see more trading recaps like these in the future thank you guys so much for watching as always i'm the humble trader and i'll see you guys next time you.