//This is just a TOPUP Buying The Dip Strategy that you can incoporate with your existing DCA type investments
What I like about trading Commodity based ETF (i.e Oil and Gold), every falling price will always means its just a correction. Meaning, after a dip it will again rally. Unlike stocks, it's difficult perhaps borderline impossible for commodity price to fall below zero (in this case for oil, it did but not for long) hence ETF that tracks the price of Oil will never go below zero.
Everytime this ETF make 50% correction, you buy the ETF shares. That's the strategy. Now I do not recommend to use a buy and hold strategy here. You need to decide how you want to take profit as soon as you buy the shares. Percentage based? Momentum based? trailing stop? fundamentally based? All up to you
The whole point of this post is to show every correction/falling price, its an opportunity to buy. This is a monthly chart and such opportunity only occured 3 times in the last 20+ years.. hence why I call this just a TOPUP strategy.
This can work with other commodity based ETF and you even can use this for SP 500 but waiting for 50% correction would be very rare but perhaps shorter corrections like 6-8%
What I like about trading Commodity based ETF (i.e Oil and Gold), every falling price will always means its just a correction. Meaning, after a dip it will again rally. Unlike stocks, it's difficult perhaps borderline impossible for commodity price to fall below zero (in this case for oil, it did but not for long) hence ETF that tracks the price of Oil will never go below zero.
Everytime this ETF make 50% correction, you buy the ETF shares. That's the strategy. Now I do not recommend to use a buy and hold strategy here. You need to decide how you want to take profit as soon as you buy the shares. Percentage based? Momentum based? trailing stop? fundamentally based? All up to you
The whole point of this post is to show every correction/falling price, its an opportunity to buy. This is a monthly chart and such opportunity only occured 3 times in the last 20+ years.. hence why I call this just a TOPUP strategy.
This can work with other commodity based ETF and you even can use this for SP 500 but waiting for 50% correction would be very rare but perhaps shorter corrections like 6-8%
