The Dip-Buying Dilemma: Are You Making This Mistake?

Why I prefer buying breakouts vs. dip buying ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ Good Morning! We nailed another premarket spiker in my morning webinar yesterday… Apollomics, Inc. (NASDAQ: [APLM]( had a 13% move from the premarket setup I said to watch for. I’ve written about that setup in the last few [Daily Accelerator issues]( But after the open, APLM dropped like a rock and never looked back. This time it wasn’t just because it was a chat pump... It was another phenomenon that happens in the market… This is why I prefer to buy breakouts and strength than try to dip buy stocks. It all depends on your personality and trading style. But here’s what I think happened — see if it makes sense to you… [See how AI can help you spot YOUR best stocks to trade here]( Why I Buy Strength Instead of Weakness If you’ve been following me for a while, you know I love to [buy strength]( — when a stock breaks above key levels. I like to ride the momentum of [short squeezes]( when short sellers get proven wrong as a stock keeps climbing. What causes that straight-up price action is short sellers guessing tops… As a stock climbs higher, they keep adding to their losing position and eventually have to [buy to cover](. They might even re-enter and try to short again... And this can happen over and over again as the price climbs higher until all the stubborn shorts are eventually blown out of their positions. Now picture that kind of price action in reverse. That’s what I think happens when too many dip buyers enter a stock… Dip buyers try to guess the bottom. Then they add to a losing position because they have no [trading plan](. Then maybe they sell and try to rebuy or they just baghold for months — and the cycle continues. Until every single dip buyer gives up. APLM chart: 1-year, daily candle — courtesy of [StocksToTrade.com]( That’s why guessing bottoms is just as bad as guessing tops. But just like I'm not against short selling, I’m not against dip buying… I’m against dip-buying crappy scam biotech chat pumps. Dip-buying real companies and stocks with [real news]( is a different story. If you want to dip buy an earnings winner at [support]( or another key level, I’m okay with that. But APLM’s news was a joke, the company is a joke, and it was a chat pump. Knowing when to dip buy and not to dip buy is a skill you will learn over time. And dip buying might become a strategy you like to use… It all depends on your personality and [trading style](. I prefer to take advantage of big upside moves when short sellers join momentum buyers on huge upside moves. And that’s what I teach traders to do in my live webinars. See how you can [join me in Pre-Market Prep every morning]( by attending one of our training sessions. They’re completely free — [just sign up here to get in]( Have a great day everyone. See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade sponsored   Sykes: “Claim Your 90-Day Test-Drive To My New AI” Tim Sykes here… Every day, my patent-pending AI issues 1-3 new forecasts with high confidence! My AI runs autonomously so it doesn’t matter whether the market is up, down, or sideways… It recently identified peak 1-day moves like 77%, 106%, 126%, 136% and more. [Claim your 90-day test-drive now]( sponsored   This “Loophole” Is So Powerful There’s a renegade day trader who discovered a [powerful “weekend loophole” in the stock market.]( It allows him to place trades on Friday afternoon… And open up his laptop on Monday to potential green. He’s used this “loophole” to make $8,780, $9,177, and even $69,962 all over the weekend. And he claims with the right amount of hard work and dedication, ANYONE can learn how to use it too… [Click here to discover how he does it](   sponsored   ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist](   Recommended Membership Gifts     [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Spotify]( [Click Here to Unsubscribe]( (As an Amazon Associate, we earn from qualifying purchases.) 13809 Research Boulevard, Suite 500, Austin, TX 78750 **Tim Bohen teaches skills others have used to make money. Any results displayed are extraordinary and are not typical and will vary from person to person. For more info read our [Earning Claims Disclosure]( About: Making money trading stocks takes time, dedication, and hard work. 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