Stock Market: Losing 10% Isn’t The Same As Winning 10%

We survived October without a major stock market crash! That’s great news, but how do you make sure that you have crash protection even through the little dips in the market?

Recovering From A Loss

Maybe you weren’t protected during a dip and you’ve had a little or a big loss. You might think, if it’s small, that it will be easy to recover the lost funds. That’s an excellent attitude! Let’s look at the simple facts.

Suppose you invest $100. It loses 10 percent the first month and then gains 10 percent the second month. At first glance, you’d say the account would be back to where it started at $100. Take a second look. 

If you start with $100 and it loses 10 percent, the balance is now $90. For the second month, the 10 percent gain is based on the starting point of $90, so the account would only gain $9. It would take just over 11 percent to bring it back to its original $100.

The bigger the loss, the bigger the gain needs to be to recover. Check out this article posted on Zacks. It explains that a 25 percent loss takes a 33 percent gain to get back to break-even. If you have a 50 percent loss, you will need a 100 percent gain to recover and an 80 percent loss requires a whopping 500 percent gain to get back to your starting point!

Protect Your Investment With iFlip’s AI

iFlip has developed an Algorithmic Intelligence (AI), which actually solves the unforeseeable crash dilemma. It protects and grows wealth for all investors. How? Using algorithmic trading software, AI allows you to lose small and win big over time.

The following image shows the comparison between the market (S&P 500) and iFlip (AI) in the last seven crashes since 1987. Savings averaged 20.8% per crash.

Flexible AI Protection

You can choose different algorithms based on your risk tolerance. Want to have everything done for you? iFlip’s automated trading software uses AI to manage the risk of market crashes and minimize your losses. Learn how AI can help protect your retirement and personal investments here.

Lose Less, Win Bigger

By losing less, you win bigger because you don’t require the big gains to recover your account. At iFlip, using AI can protect your account, minimizing the losses and reducing your risk.

Be ready for any potential crash by losing less. Have the best algorithmic trading software working to protect your investment. 

Mobile App Available Soon

iFlip’s algorithmic trading software will soon be available as a mobile trading app. Imagine knowing your investments are protected by simply checking an app on your phone. 

You’ll be able to trade stocks, even partial trades, or let AI’s stock trading software do it for you. All free. And it’s not robo trading! Here are the Trading App details.

Related Article: What Robinhood Doesn’t Have

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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.

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