Buying the dips is a strategy used to purchase the stock you want at a better or cheaper price. When you find a stock you like you should begin to follow and chart the stock. Nothing moves straight up and even if your stock is moving upwards it will have a couple days of down prices before continuing its trend upward. Perfect timing when “buying the dips” would be to catch the stock on a pullback to a recent support area and then pick up the stock. You will be at an area of support and hopefully the support will hold and bring the price higher, in this case you will immediately have a green trade. Some traders use the buy the dip strategy to increase their position in a stock as well. Day traders will use this strategy for intraday trades where they look to pick up a gain by scalping. Read more about Buying the Dips