\u201cBuy the dip\u201d \u2014 when stock prices head south, like they did during the uncertainty around Trump\u2019s tariffs earlier in 2025, this is a popular phrase among investors. But what does buying the dip mean, how do you do it, and what are the benefits and risks involved with this bargain-hunting strategy? Keep reading to find out.<\/p>
When we say buy the dip, we\u2019re not talking about the guacamole or the French onion. Instead, buying the dip is a strategy that involves buying a stock once it has fallen in price but you expect it to rebound.<\/p>
The basic premise behind buying the dip is an obvious one: buy low, sell high. When you pick up a stock at a discount, there\u2019s the potential to make a larger profit in the long term. And as investors who got in following the COVID-19 stock market crash of March 2020 will tell you, there can be lucrative returns on offer.<\/p>
Let\u2019s say the stock price of Company XYZ has fallen 10% in recent times due to broader market uncertainty surrounding geopolitical tensions. But the fundamentals of the company remain strong, it\u2019s in good shape financially and its future prospects are bright. By buying the stock when its price has dipped, you\u2019re aiming to pick it up at a discount.<\/p>
But you\u2019ll need to know how to identify a stock that is undervalued and set to rebound in price, plus be willing to accept the fact that successfully timing the market to perfection is more or less impossible.<\/p>
Ready to buy the stock market dip? Here\u2019s what you need to do.<\/p>
You\u2019ll need to make sure you\u2019re set up and ready to buy the dip whenever it occurs. Compare stock trading platforms to find a broker with low fees, an easy-to-use platform, and access to the assets and markets you want to trade. When you\u2019ve found the right platform, create an account by providing your personal info and contact details, then deposit funds so you\u2019re ready to trade.<\/p>
Learn more about choosing a platform in our guide to the best stock trading apps in Canada<\/a>. You may also want to look for the best brokerage signup bonuses<\/a> to help you decide where to trade.<\/p> Use the table below to start comparing online brokers in Canada.<\/p>