AFRM's late-August rally reversed in September, mirroring market trends. Following a September 10 low, the market bounced back, making AFRM's strong earnings report an attractive buying opportunity. However, daily profits are unrealistic due to market volatility.
Incorrect market bets with low risk tolerance inevitably lead to losses, while large bets amplify stress and impulsive decisions during price drops. Conversely, greed prevents profit-taking during upswings, and premature selling forfeits potential gains.
Effective trading prioritizes capital preservation over chasing profits. Risk tolerance should be balanced (10-30%) to avoid excessive losses or minimal gains. Overconfidence from information overload fuels buying sprees during upswings, only to evaporate during downturns, leading to ill-timed sales.
Most market predictions from analysts, influencers, and news outlets merely follow trends, lacking personalized insights into individual risk tolerance and psychology. Accurate information still requires timely entry and exit strategies to avoid losses.
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