That's actually bad advice he gave Binnie. Just because the market drops 1000 points doesn't mean it's ready to go back up soon. The old saying goes "The market can stay irrational longer than I can remain solvent". That means you can buy on a down dip and think you are about to make a killing, and then end up sitting on dead money moving sideways for another 4 years.

I encourage everyone to read the old time classic, the Great Grandfather of all technical analysis books, "Technical Analysis of Stock Trends", first written in 1948. That book is considered a professional college grade text book and is the key to understanding a great deal else if you use it as a masterkey.

PS: The book is a few inches thick. So don't bother with this if you don't enjoy reading.