“Buy the dip” is a trading strategy based on the idea of purchasing an asset after it has declined in price—anticipating a recovery and aiming to profit from the rebound.

It’s most commonly used in bullish markets, where short-term pullbacks are seen as temporary pauses in an overall upward trend.

The logic is simple: when markets temporarily fall due to fear, overreaction, or profit-taking—but without a change in fundamentals—smart traders see opportunity.