Two pieces of advice I read most often in regards to stock market investments are:
- Stay invested in the market -- time in market is more valuable than timing the market.
- Buy the dip -- if the market falls, invest more money instead of cashing out.
This might be a stupid question, but how can you accomplish both at the same time. How can I buy the dip, if all my savings is already invested in the market?
Does this mean I should keep some portion of my savings in cash that I gradually put into market as and when the market falls. But then that goes against the first principle, since it is kind of trying to time the market and losing out on any market growth while my money is out.