Trading is when you buy a altcoin for a low price and sell it when its price comes up so you will have to keep an eye on the market.
Risks? The most common risk is the altcoins short life span, If you search in google, you will see that most altcoins got dumped in just a short period of time.
The other one is failing to predict the price, example is when a certain altcoins price is getting lower and lower so you sell it all to avoid losing money more, Sometimes the coins price might increase again.
the price increase after being dumped very far only for popular coins such as ethereum and the rest. most likely to be dead and deleted from the market after there's none activities around . would prefer cut lose rather than really losing the whole of money on just an altcoin
But sometimes due to the domino effect, after the dump, it will stay a bit then it will continue to decline in price. Just what happened in the first month of 2014, after the bitcoin bubble of 2013 burst. It was dumped and due to the negative impact made by that dumped, Bitcoin price continue to fall down to sub 200 USD then eventually recover upto what it is right now.
Past performance can't guarantee future results. Also, the quoted past above is pointing to altcoin trading where we all know that price behaviour is very much different compare by doing bitcoin trades.
Always expect a massive dump after a bubble and it's always happened many times especially in bitcoin price. People minimize the possible loss or to secure profits that's why they are taking the ride everytime there is a bearish activity rather than just watched the price without doing nothing.
Making a wise decision is much better than targeting the exact thing to be executed. If people succeeds in predicting the price after making a good trading decision then they just made a wise decision.
Yeah. Sometimes going with the flow will higher the possibility of loosing money if you do not know what you are doing. Some are just trolling others or the newbie trader to be exact and they are fooling them making it look like many are buying the coin. So the thing is newbie traders are going with the flow thinking the price will continue to go upwards but as they get the price they want. Soon, they will dump the coin causing a negative trade to those who bought at high price.