Tips to buy during a Stock Market Dip
Aug 23, 2023The market has been running high recently, which means stock prices have been soaring and people have been profiting, but we’re now in a dip. This is good news for Investors! Why? Because it means there’s profit to be made.
This is the perfect time to work with a financial advisor (i.e. me!) so they can guide you on where you’re best placed to Invest for maximum Profits!
But first let’s start by looking at what is a Dip, or Correction.
A Dip/Correction
A Correction is a decline of 10% or greater in the price of a security, asset, or a financial market. A security is a share of a stock e.g. Apple as the company has stocks/shares in the New York stock exchange for people to purchase. That simply means you have some ownership in that company.
A Correction can last anywhere from days, to months, or even longer.
This is an ideal time to buy! Apple is one of the most profitable companies and is great for both long and short term investing. Why? Because it’s a safe bet - we don’t expect Apple to go bankrupt, their products sell well and they are diverse in what they offer for example not only do they make hardware like iphones, macbooks etc, they also have apple music, apple podcast etc (note, these are the types of things we can look for when looking at what companies to invest in).
A Dip is damaging in the short term as the share price can decrease, but if you hold on to your shares and keep them for more than a year (making it a long term investment), you’ll get tax benefits too. If you have shares in companies such as Apple, you’ll be creating generational wealth!
When a market is in a Correction there’s a great opportunity to purchase Stocks and take a profit once the Stock increases.
A note on panic selling:
When the price of a stock falls people may panic sell their shares. But once you understand that this is the natural cycle of the market, you’ll realize that this is totally normal and you don’t need to panic sell.
Why is this the best time to Invest?
Dips are the best time to Invest because the stock prices are down. A Correction allows us to buy a stock/share of a company at a price which will ensure a profitable return.
Taking a Profit from your Investments
During Earnings Season is one of the best times to Invest (check out my blog here about Earnings Season)
If you’re looking for a long term investment, as well as quick cash, now is the right time to Invest!
Which company to Invest in and at what Price?
To understand which Company is good for you to Invest in, we need to first assess:
1. Your individual risk tolerance
2. Your desire to make a quick return- short term investing or
3. Your desire to create wealth for your family- long term investing
Find out more about how I work with my Client’s here. That’s why working with a financial advisor is imperative to create a bespoke plan for YOU. I can’t give you blanket financial advice without understand your PERSONAL situation and circumstances first.
How I help my Clients achieve Long Term and Short Term Success
I am an active investor in the stock market myself and have a wealth of experience in how to read financial statements for companies. I also keep myself informed of what companies are profitable by reading the financial news daily. And I’ve personally invested for over a decade, I know which companies can be profitable short term and which companies should be held long term.
Hence when a client works with me during a market Correction, they’re able to gain a quick profit!
What would a quick cash return help you with this week?
Do you dream of something you cannot justify spending money on? A vacation? A material purchase like a handbag? Paying off a lingering debt? To go on Hajj? Or saving for the upcoming black friday deal?
I have helped over 100 women achieve all of this and more and spend money guilt-free. You still get to keep your initial investment, reinvest or just take the profit and wait for another Correction to invest again!
Money in a checkings account is losing value
Inflation currently sits at 4%, which means as the cost of living goes up, the money in your account will de-value.
Investing your money helps you to not only keep up with inflation, but allows you to UP your standard of living and enjoy life.
Work with me
If you’re serious about investing then now is the time! Can you commit to your own progress? Yes? Then let’s get started.
Book in a 1:1 financial mapping consultation now.
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