BTFD
An acronym for 'buy the dip' (with an expletive), urging purchases when prices fall sharply.
The rallying call of dip buyers. BTFD treats every sell-off as a discount and every bounce as proof the strategy works. In a long bull market, it can look like genius.
The risk is obvious. A dip can keep dipping, and 'buy the dip' has bankrupted plenty of traders who caught a falling knife instead of a bottom. It works until the trend breaks.
Related terms
A short-term drop in price, often viewed by buyers as a discount within a larger uptrend.
Dollar-Cost Averaging (DCA)Investing a fixed amount on a regular schedule, regardless of price, to smooth out volatile entries over time.
Dead Cat BounceA short-lived rally inside a larger downtrend that fades fast and gives way to more selling.
Weak HandsTraders likely to sell quickly under pressure, often at a loss during dips or volatility.