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Still Hodling "Buy the Dip Stocks" for Now

Volatility makes it challenging to hodl buy the dip stocks.  When a very profitable stock dips 20, 30 or 50%, my instinct is to sell and kee...

Sunday, July 12, 2026

I Quit Buying the Dip

I've stopped buying the dips.  I admit that is has been exciting, an adrenaline rush, that I have enjoyed; but it's not a long term situation that is sustainable. It requires more attention and work than I want in the future.  The index funds are less exciting, but less volatile, and require much less attention.  Overall, I have done better with the index funds than the individual stocks at this point.  Thus, I'm moving back to thinning out my individual stock holdings and investing in broad market equity funds and fixed income.

Basically, it's no longer fun and is becoming stressful.  If I had sold all my buy the dip stocks when initially profitable, I would have made money on all but one.  Instead, I held, hoping for bigger gains and instead half of them dropped to 52 week lows.  Psychologically,  I'm now a long term investor (cynically known as bag holder), waiting for them to profitable again, if ever.   Definitely, not fun and is stressful.

However, I plan to still hodl the buy the dip software stocks I purchased in February 2026.   I won't add to them if they decline further, and I won't sell if get slightly above breakeven.   Also, I still reserve the option to occasionally purchase an individual stock, but I plan to add no new positions and, longer term, reduce to only 10-20 individual stock positions maximum.

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This is not financial, stock picking, nor stock investment advice. Please consult a professional advisor.

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