Instant Stock Risk Alerts
SmartStops Instant Risk Alerts notify you the moment your Stock or ETF needs attention.
Be smart about the risk you take and maximize your return per day in the market.
Hope is a big money-loser in the investment business. It is hope that keeps you from selling your losing stocks. Or as you watch your profits evaporate, it is hope for a comeback that prevents you from protecting those gains.
Hope stops you from cutting your losses before they get bigger.
Fear let’s you go of your winners too soon.
You must take the emotion out of investing and not rely on hope, fear or optimism to be your stock investing strategy.
“The road to long-term investment success runs through risk control more than aggressiveness. Skillful risk control is the mark of the superior investor.” – Howard Marks, OakTree Capital
What is an Instant Stock Risk Alert?
How will it Save Me Money?
A SmartStops Risk Alert is sent immediately to you during the market day when a SmartStop is triggered to flag you of increased risks to your stock or etf and to enable you to take protective action.
Know When to Sell or Hedge
Whether you exit your position entirely or partially, or hedge with options, you’ll be able to capture your gains before the rest of the public catches on and the herd mentality takes over.
Sure the market came back… BUT IT TOOK YOU 5 YEARS… 5 years to get back where you were!
If the price of any one of your Stocks or ETFs is triggered, you will immediately receive an Alert.
Price drops to trigger a SmartStops
Elevated Risk Alert
Price rises to trigger a SmartStops
Return-to Normal Risk state
Look at how these Smart Risk Alerts can save you money.
View real-time stock/ETF risk exposure
Risk Alerts enable you to Act Fast…. and Save More!
Timing is everything … and “instant” is the best kind of timing. Too many investors have no idea when to sell a stock or etf. And what they end up doing is holding on to their losers and letting their winners go too soon. SmartStops Instant Stock Risk Alerts give you the advantage so that you can limit your losses and let your winners run.
With SmartStops doing the intelligent monitoring, most days you won’t even be watching your portfolio. But if you receive a SmartStops Risk Alert on one of your equities, today is the day to take a look. Review the fundamentals, the latest news, talk to colleagues or your investment advisor, Action may need to be taken such as selling, hedging with options or talking to your advisor.
“Be fearful when others are greedy and greedy when others are fearful.” – Warren Buffet
If you feel no action should be taken, then rest assured, SmartStops will continue to be monitoring your symbol now that risk exposure is elevated. Plus our algorithms change so that protection can be tightened up even further. That increases your downside protection. And as the price may continue to drop, may SmartStops will keep alerting you, giving you additional opportunities to take action to guard your profits and minimize your losses.
SmartStops Instant Risk Alerts are in real-time – not after the market has closed (which other services i.e. Tradestops do).
That puts the power in your hands at the right time.
Ask Yourself – was I prepared in 2008?
Indiscriminately, like a tsunami, (2008), that wiped out some US $15 trillion in asset values, hitting every asset class, every market, every geography, and every client segment: 15 years of capital gains were wiped out in 15 months.
Imagine if you had Sidestepped 2008 completely!
“Don’t Sell” Advice Cost Me 10 Years of Retirement!
“In today’s volatile markets, it is more important than ever to manage risk exposure. We are pleased to be working with SmartStops to bring this innovative approach of risk management to our clients.”
Kevin Delo, Senior Vice President of Product Management, TradeKing/Ally
Once I Get a Risk Alert What Should I Do?
Sell the position and go to cash
Investors often become emotionally attached to their positions. They fall in love with their winners, and they hesitate to sell their losers in hopes of making it back to even. Don’t fall into this trap. A good trick is to ask yourself, if you had a thousand dollars to invest today, would you buy that stock. If not, it may be time to move on. Selling and moving to cash protects any gains and prevents further loss. It makes your capital available for other opportunities. And you can always buy back should the trend change and you determine that it is an attractive investment. Remember, selling is only the first step to reinvesting. Maximize your return per day in the market by sidestepping periods of elevated risk.
Hedge your position
Instead of selling your long position, you might consider using options to hedge your position. Buying an out of the money put on your long position is like purchasing downside insurance. There is a cost, but it the storm hits, it will be worth it. SmartStops risk states help investors optimize when to put protection on with options and when to close that position. Contact your broker to learn more about option strategies.
Employ sector rotation with alerts from SmartStops
One popular and effective risk management method is sector rotation, or moving from higher risk overbought sectors to lower risk underbought ones. The trick is to know, when to make the move. Besides this risk alert, the SmartStops Market Risk Barometer can help. This risk tool provides a history of risk ratio levels for various market sectors including basic materials, consumer goods, consumer services, energy, financials, healthcare, industrials, technology, telecommunication and utilities.
Rebalance your portfolio
Take a look at the position as it reflects in allocation of shares to your overall portfolio? Might this be the best time to rebalance your portfolio? Has this been a winner in your portfolio and grown to such a size now that it represents a large percentage of money in your portfolio? Perhaps with the equity risk premium being in an elevated state, now is the time to reduce the exposure that this risk state is alerting you to.
Make smarter decisions to increase profits, cut losses
Successful investing requires the ability to make timely and well-informed decisions. The right decision at the right time can make a substantial difference in your profits.
Let SmartStops show you the way to stress-free investing.