Buying the dip" refers to the act of purchasing stock (or increasing positions) during a decline that meets certain criteria. A simple parameter could be to buy when a stock or the broader market index has fallen more than a certain percentage from its recent peak.
Buying the dip, on the other hand, can be less of a specific instruction and more of a general statement of confidence that the uptrend will continue and that it is not time to sell. Many investors get nervous and consider selling when stocks begin to decline, despite the fact that minor declines are common, even within long uptrends. This is a natural tendency linked to loss aversion bias. Buying the dip would represent an affirmation of the longer-term uptrend and an opinion that now is not the time to sell.

Buy the dip refers to purchasing an asset when its price drops temporarily, expecting a rebound. Traders and investors use this strategy to acquire stocks, cryptocurrencies, or other assets at a lower price before an anticipated recovery. The approach relies on the belief that the asset's long-term trend remains bullish despite short-term declines. However, timing the dip is risky; prices may continue falling. Successful execution requires analysis (e.g., support levels, market sentiment) rather than blind buying. Risk management, such as setting stop-losses, is essential to avoid significant losses if the downtrend persists. It’s a popular strategy in both bullish and volatile markets.