BTFD, an acronym for "Buy The Fucking Dip" refers to the strategy of buying an asset during a dip in its price.

This strategy can be rewarding if it pays off and the price rebounds and shoots even higher—as you'll purchased the asset at a discount and earned greater profit. But it's ultimately a risky strategy. It's impossible to know when you're buying at the lowest point. A trader could buy the dip, just to see the price decline even further, take years to rebound, or simply never rebound.

For an example in the stock market, the Japanese equivalent of the S&P500, the Nikkei (an index tracking the top 225 companies in Japan), peaked at nearly 40,000 in 1989. It then dipped down, which it's guaranteed many traders decided to buy the dip in hopes of it reclaiming it's glory. But the price continued to decline and the price has since traded between 8,000 and 24,000 in the last 30+ years.

A crypto example is nearly all cryptocurrencies that were available and popular during the bull market of 2017 when Bitcoin shot up and peaked in December 2017 at $20,000. The prices then started to decline. Many traders saw the decline as a great time to buy at a discount. But the price continued to decline to a low of $3,000 for a bitcoin over 1.5 years. Even since the price has not hit higher than $14,000—and thinking it will go higher again is speculation.

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