The reason why buying the dip heavily in the short term is likely to lose money

When something is going to drop 75%, if you start buying the dip at a 50% drop, you can still lose another 50%.

When something is going to drop 90%, if you buy the dip at an 80% drop, you can still lose another 50%.

Although in the long run, you can still make decent profits after the price recovers, how many people can hold on with a 50% floating loss at such low levels and maintain strong conviction? And how many can continue holding for profits after a 100% rebound from the bottom just barely breaks them even?

So when buying at low prices, never adopt the strategy of heavy short-term dip buying. Instead, buy moderately at lows and hold long-term. Proper position control is the optimal solution.

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