DEFINITION of BTFD
Buy The F’g Dip means to buy a coin when it has dumped so hard. It is advice to other traders to pick up a coin that’s presumably hit its bottom.
WHAT IT IS IN ESSENCE
It refers to the idea of buying a stock or commodity during a price decline. Cries of BTFD date back to 2011. But it started surging again this year after some lulls.
You must be bit perplexed if not outright confused when you hear the term BTFD, the first time coming from a long stint with Forex trading.
In Forex trading every trader follows the sample – buy low and sell high. So basically in the stock market, you are either a Bull or a Bear. It depends on which side of the trade you prefer. The bulls love the when the market is going up and the bears like to short sell.
But, the market works in cycles and nothing stays forever.
When the bull run had gone too far it is smart to buy the dip. Especially if the bullish market overstretched. And the bulls just didn’t want to cave in. After a long period of the bull market, who will blame the traders who were just Buy the f***g dip (BTFD).
What would a “failed dip” be? A failed dip would be a slight downturn that recovered? Why would anyone urge anyone to buy a stock trading sideways? Makes no sense?
Whenever the market is down at least 1%, you buy the index with a little leverage and watch the money roll in.
BTFD has historically been mentioned the most in relation to $SPY or in isolation of any ticker at all. S&P 500 Futures, $SPX, and $QQQ all crack the top 7 BTFD securities as well. These occurrences on macro market level forums suggest that traders aren’t out there buying every dip. But rather Buy The F’g Dip is an attitude and a mentality when confronting pullbacks in the market.
HOW TO USE
Buy The F’g Dip isn’t so much a strategy. It is a bullish anthem, battle cry, and way of life.