Buy the Dip Now or Wait for Lower Prices?

Name: Buy the Dip Now or Wait for Lower Prices?
Uploaded: 2026-07-18T13:54:12.000Z
Duration: 17 min 31 s
Channel: Ricky Gutierrez

Ricky GutierrezJuly 18, 202617m

Topics10

Market Context and Uncertainty0:01 Semiconductor and Memory Chip Focus1:32 NASDAQ Market Analysis3:30 Investment Approach for Beginners4:30 Risk Management and Leverage Warning6:31 Accessibility Concerns and Position Sizing8:32 Learning Through Small Positions10:32 Impulsivity and External Barriers12:02 Avoiding Overleveraging Consequences13:02 Resources and Platform Recommendations15:30

In a Nutshell

Markets have pulled back sharply, hitting semiconductor stocks like Micron and SanDisk especially hard, yet these remain at low forward PEs with multi-year sold-out backlogs. Beginners should start tiny—one share only—to learn drawdowns and risk tolerance without emotional or financial damage, while avoiding leverage and overleveraging entirely. The core rule: control position size and conviction, not market direction or news.

AI-Generated Notes

These notes were generated by AI and may contain inaccuracies.

Markets have pulled back 7% from all-time highs, prompting widespread concern and second-guessing about whether to buy the dip or wait for potentially lower prices. The current situation involves escalating tensions in the Middle East, with the ceasefire ending and renewed attacks on Iran since July 7th. Oil prices are rising again after inflation data showed improvement in June during the ceasefire period. This raises questions about whether July inflation will come in higher due to elevated oil prices.

The primary market discussion centers on semiconductors and memory chip stocks, including Micron and SanDisk, which were among the best-performing stocks of 2026. Micron is currently down 30% and SanDisk is down over 40% from recent highs. Despite the pullback from an insane rally, these stocks remain trading at very low PE ratios. The forward PE ratio for Micron is described as incredibly low. Some analysts have pointed out that these companies have historically been cyclical, experiencing periods of huge demand catalysts followed by sharp declines, though current conditions show companies sold out for the next two to three years with infrastructure being built that wasn't previously constructed.

The broader NASDAQ market, tracked by QQQ, is down approximately 7% from all-time highs. However, individual semiconductor stocks have taken significantly larger hits over the past two to three weeks. Looking at the daily chart, there is potential for a larger gap down if the NASDAQ sells off to end-of-March levels, which would represent a 20% retracement from current levels. The NASDAQ functions as an incubator where individual stocks fall even harder when the broader market declines, with overhyped and overvalued stocks potentially correcting even more severely.

For someone just getting started as a complete beginner, the focus should be on gaining experience rather than making significant profits. A common saying notes that some of the best investors are skilled at doing nothing for extended periods. The recommendation is to keep it simple by selecting one or two companies to invest in, focusing on those believed to be fundamentally good deals with long-term conviction. This approach applies particularly to AI and memory chip space investments, which have been trendy, though these stocks have experienced significant hype and price momentum that could lead to harder corrections.

A recent article highlighted that over a million traders in South Korean markets were overleveraged and subsequently liquidated, representing approximately 3.4% of the adult population. The key mistake identified was becoming overleveraged at overbought levels during uncertain times. The critical principle is that while market direction and external factors like Federal Reserve policy, Trump statements, Middle East developments, and inflation trends remain outside individual control, investors can control what they invest in and how much they invest. The first investment should not be expected to generate millionaire status or $100,000 returns.

The accessibility of trading platforms has lowered barriers to entry, allowing anyone to buy and sell stocks, which isn't always beneficial as it can turn intended investments into trades. The suggestion is to start with just one share of a chosen company to gain experience without devastating losses. For example, if buying Micron at $8.30-$8.40 and it drops another 10%, the loss on one share would be approximately $0.83, which most people can tolerate. This allows for mathematical exercises: calculating what a 10% move would mean on a $10,000 investment ($1,000 gain or loss) or a 20% move ($2,000 gain or loss).

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Buy the Dip Now or Wait for Lower Prices?

Market Context and Uncertainty00:01

Semiconductor and Memory Chip Focus01:32

NASDAQ Market Analysis03:30

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