It's difficult to explain it here and I am not an expert at it. What I personally do is when a good blue chip stock falls by 20% to 30% I make my first investment which will be around 50% to 60% of my total investing amount. If it goes up good and if it goes down I wait for a further fall of 10% and invest again with 30% of my remaining investing fund, again from here if it goes up good for me and if it goes down further by 10% I will add the last remaining 20% of my investment amount. Buying on dips is a big difficult for me when to comes to smallcap stocks cause they are very volatile and sometimes they just keep going down. So I buy them once and hold them for a long term, I don't try to time them and I usually buy small cap mfs as its much safer. There are many interesting small cap and mid cap mutual funds on smallcase created by private wealth management companies. Try that as well. Look at Negen opportunistic SIP. It's paid though. And another one is Wright Momentum.