> But the farther away any trader gets from fundamentals -- e.g. buying something they already think is overvalued because they think it will continue to climb

> But the farther away any trader gets from fundamentals -- e.g. buying something they already think is overvalued because they think it will continue to climb -- the statistically riskier it is and the more likely they'll lose money. How? By what mechanism? The fact is, as long as shares of the company don't actually get removed from the market entirely, the price of the shares is what people are willing to pay for them.