The Most Misused Advice in Investing

A BRIEF SUMMARY:

• Some of the most repeated investing advice are also the most misused

• Phrases like “buy the dip” or “markets always go up” are technically true, but context matters

• Taken at face value, they can push investors into chasing hype, ignoring risk, or holding on too long

• Real investing wisdom comes not from slogans but from judgment, adaptation, and knowing when the rule does not apply

Some of the most popular investing advice are also the most misused. These are the lines everyone repeats at dinner tables and in WhatsApp groups. The ones that sound too good to argue with:

• “Buy the dip.”

• “Time in the market beats timing the market.”

• “Markets go up over the long run.”

Each of these is technically true. But repeated without any context can push people into costly mistakes.

“Buy the dip.”

Yes, if you are buying a quality asset at a reasonable price and your time horizon is long enough to ride out pain.

No, if you are piling into speculative names because they fell 20% and look cheap.

In 2021, investors “bought” the dip in sexy investments like Zoom, Roku, and ARKK. In 2022, those dips became a 70% loss. There is a difference between a temporary setback and a structural decline.

“Time in the market beats timing the market.”

Yes, because most returns come from a handful of big up days, and missing them hurts.

No, if you take this to mean “buy anything”.

There is a difference between not timing and not thinking. Being “in the market” does not mean being 100% of your eggs are in the market. Risk management and cash still have a role.

“Markets go up over the long run.”

Yes, because capitalism compounds.

No, if you assume that this applies to every market, sector, or company.

Context beats slogans

Advice becomes dangerous when it replaces thinking. The best investors are not blindly optimistic or permanently pessimistic. They adapt. So next time you hear one of these lines, pause and ask yourself:

• What assumptions sit underneath this advice?

• Does it apply to me and my situation?

• Who benefits most if I follow it blindly?

Bad advice can do damage, just as good advice can be misused.