How To Manage Risk For Your Investments

For many of the things you do in life, there’s risk. Driving a car. Your health. Owning a home. Traveling. Investing. Life. Because of these activities, there are ways to manage the risks involved.

Sometimes laws require you to have insurance against possible losses. If you have a car, the law says you have to insure it. It might only protect the other driver if there’s an accident. Or it can replace your car ensuring you have a way to get where you need to go.

There’s life insurance if you die, providing for those you leave behind. Health insurance covers an unplanned surgery or medical emergency. Homeowner’s insurance protects you if something happens to your house. 

You may want travel insurance if something unfortunate occurs when you travel or plan to travel. But is there insurance for investing? Well, sort of.

Risk Management

According to FINRA (Financial Industry Regulatory Authority), “All investments carry some degree of risk. You cannot eliminate investment risk. By better understanding the nature of risk, and taking steps to manage those risks, you put yourself in a better position to meet your financial goals.”

A Money Basics Course at Smart About Money says, “Controlling risk is key to your investment strategy.”

And Investopedia explains, “In the financial world, risk management is the process of identification, analysis and acceptance or mitigation of uncertainty in investment decisions. Essentially, risk management occurs when an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment, and then take the appropriate action (or inaction) given the fund’s investment objectives and risk tolerance.”

Using risk management in your investments is the best insurance strategy. Sounds easy enough, right? If you add in human emotions, it gets complicated. What if there was a way to remove the emotions from investing and managing risk?

Algorithmic Intelligence (AI)

Kelly Korshak, CTO and co-founder at iFlip used to work on Wall Street helping big companies like Morgan Stanley, Deutsche Bank and Diamondback Capital invest over $4 Billion. With a graduate degree in mathematics, his strategy is built around the approach that mathematical algorithms produce superior risk/reward in the stock market.

Turning that algorithmic approach into the best algorithmic trading software, removes the emotions from investing. With automated trading software, algorithmic intelligence (AI) is able to analyze the market daily and then buy, sell or hold the positions in your portfolio.

Related Article: Algorithmic Intelligence AI: How It Is Disrupting Your World

Trying to analyze your positions and then time your movements in and out of the market makes it hard to be profitable in your investing. By using AI, you have a type of insurance or strategy against trading based on your emotions.

Also Available As An App

For years, investors have loved the ease of using algorithmic trading software on their desktops. Now, the best algorithmic trading software is available as the best stock market app for android and iOS. 

From your mobile device, you can check your investment portfolio or even trade manually. You can learn more about mobile stock trading by watching this short video.

Since you can’t call your favorite insurance agent for investment insurance, use the combination of AI, algorithmic trading software and the best stock market app for android.

It’s your best bet for risk management. Go ahead and remove the emotions from your investing. Maximize your returns and minimize your losses with iFlip’s AI.

Like this article?

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
marten bjork 6dW3xyQvcYE unsplash

Don’t Mess Up Your Finances. Here’s How

May 28, 2020

We all know it’s better to buy low and sell high, but when the market is volatile; you’re likely to do just the opposite. You...

fabian blank pElSkGRA2NU unsplash

The Best Time To Invest Is When People Are Scared

May 26, 2020

Uncertainty. Dread. Loneliness. Change. Worry. Apprehension. Fear. You’ve probably felt these emotions along with countless others since the government shutdowns. Are people scared? Does this...

austin distel 744oGeqpxPQ unsplash

How To Manage Risk For Your Investments

May 19, 2020

For many of the things you do in life, there’s risk. Driving a car. Your health. Owning a home. Traveling. Investing. Life. Because of these...

AI Stock Trading Wall Street Sign

Market Rebound – Where do we go from here?

May 18, 2020

As I write this on Monday May 11, 2020, the market opened lower this morning but is recovering. In fact the market has recovered approximately...

marten bjork 6dW3xyQvcYE unsplash

Don’t Mess Up Your Finances. Here’s How

May 28, 2020

We all know it’s better to buy low and sell high, but when the market is volatile; you’re likely to do just the opposite. You...

fabian blank pElSkGRA2NU unsplash

The Best Time To Invest Is When People Are Scared

May 26, 2020

Uncertainty. Dread. Loneliness. Change. Worry. Apprehension. Fear. You’ve probably felt these emotions along with countless others since the government shutdowns. Are people scared? Does this...

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You were referred by

Zero-dollar ($0) commissions are available for self-directed Individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices and via web interface. To obtain the commission and fee schedule, please see our website at www.iflipinvest.com. Note that certain Flip Investor Inc. Product features listed are currently in development and will be available in the near future. System execution price, speed, response time, liquidity, market information, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Some of the information provided show hypothetical results which may or may not represent live performance. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns.  Keep in mind that while diversification and the use of algorithms may help manage risk it does not assure a profit, or protect completely against losses, in a down market. There is always the potential of losing money when you invest in securities, or other financial products.  Investors should consider their investment objectives and risks carefully prior to investing.

Past performance is not indicative of future performance. iFlip data results assembled using various Flip algorithms applied to the equities listed on this webpage (if any). Results compiled for each equity and each algorithm assume a 10,000 initial investment beginning on Jan 1st 2005. A $0.01 / share commission applied. All iFlip price assumptions are based on the opening price of each day as found in Yahoo finance. Yearly NAV data points compiled by compounding annual returns using standard year over year accounting. S&P500 results are derived using the SPY as a proxy. The data on this webpage is not intended as a solicitation. Always seek professional advice for suitability.

iFlip Ultimate

iFlip Ultimate is a concierge service of iFlip Financial designed for high net worth client or institutions ($1m+ Net Worth). Click below to get started.

Download our new FREE mobile app!

Floating Mobile App