Buying on Smaller Dips

I've been waiting for a 20% correction since July 2011.  In May 2012, I decided to trickle in funds earlier to avoid missing a "fast correction."  As a result, I did put some investments in managed funds in November 2012 and February 2013.  Now I'm considering adding funds with as little as a 2% pull back.

Here's my reasoning:

No commission costs.  I plan to purchase commission free ETFs.  So I can minimize my downside risk by making small purchases.  For a 2% market decline, I can add 1% of my cash to equities.  That way I can take advantage of a further decline, e.g. add another 1% with the subsequent 2% decline. 

Economy is in an stable upward trend.  The economy continues to heal, despite political stalemate, government scandals and lurking EU sovereign debt issues.  A cautiously slow economic recovery has been good for stocks.

Market is advancing.  The market my go the whole year without a 5% correction, as it did in 1995.
Waiting for a 5% correction may have a high lost opportunity cost.

At this point, I am still trying to sell two large positions into the rally, to reduce my specific stock risk.  In addition to commission free ETFs, I may also use the rest of my commission free trades to buy select biotech and select bank stocks.

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This is not financial or investing advice. Please consult a professional advisor.

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