Buy the dip
Buying a stock right after it drops, betting it will bounce.
"Buy the dip" is the oldest pitch in trading: a stock falls, so it must be cheap, so buy it and wait for the bounce. Sometimes it bounces, and that is the chart you are shown. The question is what happens on average, over every dip, after costs.
The answer depends on why the price fell. A drop with no news often reverses a little. A drop caused by bad news, a poor quarter, a lost contract, often continues, because the news takes days to be fully priced. The logbook's earnings entry measured exactly that: after a bad quarterly reaction the loser kept falling, and buying the dip lost money.
The phrase hides the choice that matters: which dips, measured how, held for how long, and at what cost. Without those, "buy the dip" is not a rule; it is a mood.
Where this word comes up
First needed in the log entry H-042 · The post-earnings bounce did not survive our cost assumptions.
From the same entry: Backtest, Basis point, Correction for looking twice, Gross edge, Index membership, Large caps, Net return, Post-earnings drift, Pre-registration, Published anomaly, Quarterly results, Real costs, RSI indicator, Short side, Survivors only, Terciles.