The ASX stocks retail investors are buying the dip on, and those they're ditching

There's already been plenty to preoccupy Australian investors in 2026, whether it's the commodities boom, the software selloff, rate hikes or now a volatile conflict in the Middle East.

Against an increasingly-uncertain backdrop, how are investors rebalancing their portfolios? 

According to data from investment platform Stake, here are the ASX stocks that saw big jumps in buys and sells in the first two months of the year, as well as those seeing a big general uptick in trading.

The stocks getting bought 

Despite ongoing fears over the SaaSpocalypse, some of the ASX's biggest tech companies saw an increase in buys in the first two months of 2026. It seems retail investors are looking to buy the dip.

One of the poster children of the ASX software stock selloff, Xero Ltd (ASX: XRO), has been the most dramatic case-in-point. 

Buys on XRO were up 786% in the first two months of this year compared to the same period in 2025, after the accounting platform ended 2025 down 51.49%.

Brokers are seemingly in agreement, with Xero rated a Strong Buy, according to Market Index's Broker Consensus tool, with consensus upside potential of 120% from current prices. 

But sells were also up 230% in the early part of this year, and the stock is already down 32.77% year-to-date. 

Zip Co (ASX: ZIP) is another example, with buys up 58% and no change to sells. It suggests retail investors are looking to buy the dip in a way they weren't a year ago after the company posted disappointing February results.

This puts them in line with analysts who consider Zip a Strong Buy, according to Market Index's Broker Consensus tool.

WiseTech Global (ASX: WTC) rounds out the list of stocks seeing an upswing in buys early in 2026. The embattled logistics software company is down 40% this year, and recently announced it was cutting 2,000 jobs. 

But investors are buying, with buys up 290% in January and February compared to the same period last year when WTC was trading at record highs, before plunging in late February.

But other investors are seeing it differently, with sells also up 197% early in 2026.

Kylie Purcell, Senior Markets Analyst at Stake, says the elevated volatility is symptomatic of the general uncertainty facing the company. 

"Investors appear to have seen WiseTech’s share price weakness as an opportunity to buy the dip, with substantially more buy orders than sells," she said. "The share price has fallen as a result of technology sector weakness and uncertainty around the firm’s AI-driven restructuring plans, which has added another layer of debate."

The stocks getting sold

While retail investors look happy to buy the dip on ASX software stocks, it's a different story when it comes to the large caps.

The Big Four banks and miners have enjoyed special status in recent years, arguably the biggest beneficiaries of passive flows and a broad flight to safety from investors, whilst continuing to post solid results. 

The consequence is many are sitting on elevated P/Es, creating a pronounced dislocation between the top end of time and the rest of the market. 

It's no surprise then that investors are looking to sell some of the most notable large cap names, whether that's simply profit-taking or worries over stretched valuations. 

Commonwealth Bank (ASX: CBA) is the obvious example. Sells were up 170% in January and February compared to the same period last year, with buys only up 35% by comparison.

Australia's most valuable company bounced in February on positive earnings, but remains historically expensive according to brokers. 

It is currently rated a Strong Sell, according to Market Index's Broker Consensus tool, with a P/E of 27.90 against its 5-year average of around 21. 

According to Purcell, investors might be using this time as an opportunity to rebalance their portfolios and that means selling expensive stocks like CBA. 

"CBA’s elevated sell activity likely reflects profit-taking following its February result and dividend announcement," she said.

"Large, highly profitable dividend payers like CBA often see elevated sell activity after results simply because they are among the most widely-held stocks in Australian portfolios and a common source of liquidity when investors rotate into higher-growth opportunities."

Australia's second most-valuable company, BHP Group (ASX: BHP), has seen a similar pattern. Buys were up 19% in early 2026, while sells were up 110%.

Again, profit-taking was a likely contributor with the stock hitting record highs this year. It currently has a P/E ratio of 16.8 against a 5-year median P/E of around 12x.

The mining giant was up 30% year-to-date in early March after a milestone February earnings, but has since sold off after the conflict in the Middle East escalated. 

PLS Group (ASX: PLS) is another resources stock that has seen elevated selling so far in 2026. The lithium miner is back near all-time highs after a big rally in lithium prices.

But investors have been selling out, with sells on PLS up 124% in 2026, compared to a 27% rise in buys. 

The stocks seeing more trading

There's also a handful of stocks seeing both elevated buying and selling so far this year as investors look for the next great growth stock on the ASX. 

4DMedical (ASX: 4DX) saw buys jump 2,579% and sells jump 2,045% in January and February, compared to the same period in 2025. 

The medical imaging company has become one of the ASX's dark horse market darlings after surging more than 1,100% over the last year. 

Electro Optic Systems Holdings (ASX: EOS) is in a similar boat, after buys increased 1,703% and sells rose 1,448% in January and February. The remote weapons manufacturer is up 473% over the last 12 months as defence emerged as one of the year's key market trends. 

Another defence stock, Droneshield (ASX: DRO), also saw buys up 38% and sells up 408% early this year, despite already being one of the most-traded stocks on the Stake platform in 2025. 

"The stock has seen sharp price moves following contract announcements and capital raising activity," says Purcell, "with defence technology remaining a strong thematic focus for investors."

"After falling in late 2025 following insider share sale disclosures, the shares rebounded in early 2026 as investors refocused on contract wins and growth prospects. The stock rose as much as 50% in January before pulling back, highlighting the kind of volatility that tends to drive heavy trading activity."

According to one of the godfathers of modern investing, Benjamin Graham, the stock market is a voting machine in the short run.

If that adage remains true today, then the polls are suggesting retail investors are comfortable backing the beaten-down dark horses over the mainstream frontrunners. Time will tell if they got it right. 

What are you buying and selling? 

How have you been rebalancing your portfolio so far this year? What are the sectors and stocks you're dropping and which are you loading up on? Let us know in the comments below.