Buy On Dippers Beware: The Identify TrapNOTE – This is a post on mindset and emotion. It is not a trade idea or system designed to make you money. My aim here is to help you preserve your capital, energy, and focus so you can execute your own trading system with calm and confidence.
“Buy the dip” has become part of trading folklore.
But for many, it’s not just a strategy, it's a statement of self.
You’ve been rewarded for it before.
You’ve built confidence on seeing value where others saw panic.
Each time it worked, it reinforced a powerful story:
“This is what I do. This is who I am.”
So when price drops, that instinct fires fast.
You tell yourself you’re being disciplined - waiting for the next opportunity.
But often, something deeper is happening.
THE IDENTITY BEHIND THE DIP BUYER
Surface story:
“I’m the one who spots opportunity when others panic.”
“I’m disciplined. I buy when others are afraid.”
It sounds like confidence. But beneath that surface sits a hidden driver…
“I am only good when I’m right.”
“I am valuable because I can see what others can’t.”
“If this doesn’t work, what does that say about me?”
What's going on here is ego preservation .
WHAT’S REALLY DRIVING IT
Emotion: Defiance a need to prove that you know what you’re doing, and that you’re right.
Impulse: Reclaim certainty through action.
Underlying belief: “I know how this game works. I’ve done this before.”
It feels like conviction, but it’s really an attempt to confirm that as a trader you are generally always right. Remember though, markets broadly trend only 30% of the time so the chances of being wrong may be higher.
THE RISK
When markets shift regime, identity-based trading becomes dangerous.
You stop trading what’s in front of you and start defending the idea of you
Overconfidence, stubbornness, refusal to adapt can all be disguised as “discipline.”
The more attached you are to the identity , the harder it becomes to see the reality of what is.
THE REFRAME
Next time you feel the pull to “buy the dip,” pause and ask:
“Am I trading what I see or am I trading what I want to happen?
REFLECTION
If this feels familiar, take a moment to notice what being right means to you.
For some, it’s safety.
For others, it’s significance.
Either way awareness is where change begins.
By the way - since Non Farm is still scheduled to be released tomorrow (10th October) here's a link to the most recent post on preparing your mindset for NFP for anyone that's curious.
I also just noticed after posting this that the there's a great post on buy the dip from TradingView itself - for anyone wanting to get into the technicals a bit more
