So let's talk a little bit about how to buy the dip. I feel, like you know, now that the market has pulled on back. You know, who's super excited right. We hit overall highs, we prepared for this pullback and based off of yesterday's video.

You know the market has been showing signs of consolidation, meaning it's trying to establish, trying to establish its support level. I'm going to keep today's video super short and sweet. We had a lot of people. Ask me you know ricky.

I i'm ready for the market to recover. Do i buy all in right now and again, i'm not here to tell you what to do just in my experience and i'm sure a lot of you guys might agree would agree that sometimes more times than not when we buy the dip and when we buy The dip with everything in our account what tends to happen after it keeps dipping and it's one of the worst feelings, because you're like now, i have no more money to buy as it continues to sell off and a lot of people say okay. Well, what? If i just buy 50 now, and then i can just average down, the goal should never be to average down at least the way that i view it and the way that i like to empower our learn plan. Profit members is that if you decide to buy the dip like right now, tqqq it sold off right.

I see the potential if it from where it's at right now and where it can recover to just where it was at the resistance level of 175. That's 21 margin. Look at that 21. That's huge, but i understand that i'm not a perfect trader.

I don't know if you are right and if you're not a perfect trader, then we cannot expect us to buy everything and then just expect it to recover right away. When we're not really still showing signs of a reversal and what are signs of reversal? Well, when you know it establishes its support level and it begins to make higher highs and higher lows and begins to recover pulls back, establishes its support level begins to make higher highs and higher. You know lows as it begins to recover, so i'm excited for the market to recover and all of you right, i'm paying attention to tqq. I have my trade plan that i've broken down before you might have your you know: facebook apple stock, whatever it is that you have, we all have our own version of like what we're excited to buy the dip on.

Don't we, but one thing that i really wanted to empower you to do, is to take into consideration why it's so important to manage your position size when something is selling off and still possibly consolidating. I don't want to be more than 10 invested in that position and let me explain to you why i want to average up into my position when it's beginning to recover. Does it not make sense that you want to add more to the stock as it's actually showing signs of growth? How many times have you been burned? I know i've been burned so many times where i buy the dip and as soon as it shows slight signs of an uptrend i jump in and then it gets rejected. It's like, oh, my god, the market's against me.

That's definitely not the case. It's just. We got to stay patient and instead of approaching it in a super aggressive way. Think about this.

Let's say that you have a thousand dollars in your trading account and you buy with 10 of your account right if you buy with 10. That means that you buy with 100 instead of going all in especially very early on, and it begins to sell off. Not only is it less money that you're risking, but also when it begins to sell off, you can make more informed decisions because you're not irrational because of how much money you're down think about it. It's a win-win! If you are someone in 2021 that sucked at managing risk and that sucked at you know managing that position size, then maybe it's not a horrible idea to really take into consideration, maybe taking a smaller position.

First, if you decide to buy an early which is still kind of risky, but when it begins to indicate signs of an uptrend, you can average up into it. Look at all these different stocks right, we have apple. We have apple that pulled on back. You know apple, one of the most valuable companies.

That's publicly traded, i'm buying apple. I don't know about you, you don't have to right, but i like to wait for it to pull back, to establish its support level i'll, take a small position now, just in case it continues to dip that i can tolerate it, but when it begins to recover, Then that's when i step on the gas and add more to it, it's being calculated, not just thinking that the market is always going to be in my favor, but always thinking about the worst case scenario. I wanted to make sure that you understood the steps that i'm taking as the market is now oversold on how i'm buying the dip but buying the dip. In a very, i would say, conservative way by managing my position size.

I hope that this can make it just just one step easier for you to understand why position size is so important, especially when buying the dip on the stock early on. So again, i really hope that earned your thumbs up. We are kicking off that swing trading challenge if you guys haven't joined our learn plan profit group again, that is that first link in the description they get to watch me. Trade live every single day at market open they get lifetime access to the a to z.

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I wish you guys nothing, but an amazing weekend continue working hard to continue following dreams. Let your passion be out jobs under success and, like always, let's make sure that we end the year. I don't agree, no, take it easy team.