Risks to consider include :
- Market Uncertainty: There is no guarantee that asset prices will recover after a decline. Market uncertainty can cause investors to incur losses if prices continue to fall.
- Overtrading: Buying too often during a downturn can result in overtrading, which can deplete capital and reduce long-term profit potential.
- Errors in Analysis: Misjudging the cause of price declines or not taking into account fundamental factors can result in poor investment decisions.