Beginner lens
- Start with cash needs and risk capacity before you start asking whether to buy the dip.
- A decline is a test of the plan more than a test of your market-prediction skill.
- Rebalancing, scheduled contributions, and doing nothing are all valid options depending on the setup.
The first question after a pullback is not whether markets will bounce tomorrow. It is whether your liquidity, debt load, and time horizon still support the same risk exposure.
A better checklist
Review near-term cash needs. Confirm whether your emergency buffer is intact. Check whether you were already following an investment schedule. Then decide whether the right next move is a contribution, a rebalance, or restraint.