Follow our tips and strategies to help you manage your emotions and mindset during stock trading. The stock market is highly volatile and risky, and more people lose money than make it. While we can't guarantee profits, our expert advice offers you the chance to increase your chances of success and minimize losses by offering you the stocks that do actually carry values in their financial report we just noted as undervalued stocks. Undervalued stocks are shares of a company that are trading for less than their intrinsic or true value. This concept is based on the idea that the market price of the stock does not reflect its actual worth according to certain financial metrics or valuation models. Investors who buy undervalued stocks typically expect the stock price to rise to reflect its fair valuation.
01 Diversify Your Portfolio for Better Risk Management
In theory, the key to making money in the stock market is having comprehensive knowledge about which stocks to buy and sell at the right time. Therefore, it is wise to limit each stock in your portfolio to a maximum of 2% of your total investment. For example, if you have $10,000, you should allocate only $200 to any single stock.
02 Distribute your portfolio equally among all types of stock trading strategy (daily, swing, and position).
In your portfolio, include a mix of stocks to hold for a day (daily trader), a few weeks (swing trader), and a few months (position trader). Swing stocks should ideally be held before earnings calls and sold after the announcement is made public, although you might sell after you have reached your target profit or cut losses when if the price rebounds after the most recent earning call. Position trading stocks are generally the least risky and should be held during a bullish trend. Additionally, stocks planned for a few weeks might also be held longer if it helps to reduce losses or maximize profits. For example, if you buy a 'swing' stock expecting its price to rise after an earnings call but the price drops significantly instead, our AI can analyze the latest earnings news to help you assess the stock's outlook. Based on this and your own risk tolerance, you may decide—within your position limits—whether to add to your position after the drop or sell after a rebound.
03 Follow our notifications promptly and precisely in time.
Our algorithm, powered by artificial intelligence, helps assess whether current market conditions may be more favorable for buying or selling. When our signals suggest favorable conditions, you may consider adding to positions within your risk limits and position-sizing rules—never more than you can afford to lose. When the market is down, consider reducing panic selling and, if our analysis supports it, selectively adding to positions you already understand—always within your risk budget. When the market is recovering or up, it may be appropriate to trim or sell some holdings according to your plan. Never concentrate too much in a single stock or trade beyond your risk tolerance. Our machine learning system identifies stocks that may have a higher probability of trending upward over a given period. We cannot guarantee outcomes; we focus on stocks with stronger fundamentals and technical setups. This approach is intended to support your research, not replace your own due diligence.
04 The stock market can be influenced by parties with substantial financial resources.
To manage your emotions effectively, recognize that large players can influence stock prices. Our service aims to identify stocks with intrinsic value, helping you assess whether prices may rise or fall—though we do not guarantee outcomes. In many cases, a stock's price might drop significantly despite a positive financial report. Our AI system can analyze these situations and help you evaluate whether the stock may recover. If you already hold the stock and our analysis supports it, you may consider adding to your position only within your risk limits (e.g. position sizing and diversification rules)—averaging down increases risk and is not suitable for everyone. For example, if a company announces positive earnings and our AI suggests the stock may rebound, you might hold and wait, or consider adding only if it fits your strategy and risk tolerance. Never add more than you can afford to lose.
01 Daily Trader
A daily trader is an investor who holds stocks for less than a day, seeking profits from minor price changes. Stocks in this category carry medium risk. Illustrative return ranges (e.g. 0.5%–5% per day) are hypothetical and not guarantees; actual results vary and all trading involves risk. If you choose to trade these stocks, we recommend buying at the beginning of the day; some stocks may show stable positive return after a few days following earnings announcements. Our AI can assist in analyzing whether the stock price may go up or down for the day.
02 Swing Trader
A swing trader is an investor who holds stocks for a few days or weeks. Stocks in this category carry high risk. Illustrative return ranges (e.g. 5%–45% per week) are hypothetical and not guarantees; actual results vary and all trading involves risk. If you choose to trade these stocks, we recommend buying before the earnings call announcement is released and selling afterward. Please keep in mind that planned earnings calendar dates may change. Be aware that stock prices may decrease significantly even after positive earnings. We recommend considering put options or other risk management before announcements. Our AI can assist in analyzing post–earnings-call news to help predict whether the stock price may trend up or down after a fall.
03 Position Trader
A position trader is an investor who holds stocks for a few months up to a few years. This category is generally lower risk than daily or swing trading, but all investing still involves risk. Illustrative return ranges (e.g. 7.5%–40% per month) are hypothetical and not guarantees; actual results vary. If you choose to trade these stocks, we recommend buying when it fits your plan—some prefer buying when the market is falling—and focusing on stocks with stable, positive return and a higher Sharpe ratio. Earnings announcements typically have less impact on these stocks than on daily or swing names. Our AI can help you find stocks with historically stable return and undervalued, bullish characteristics.
Expected Return
Risk
For illustration only. These ranges are hypothetical and not guarantees of future performance. All trading involves risk; past performance does not guarantee future results.
