Risk Disclosure

Important Information About Trading Risks

General Investment Risks

  • Market volatility can result in rapid price changes
  • Past performance does not guarantee future results
  • Economic conditions affect all investments
  • Individual securities may become worthless

AI and Algorithmic Trading Risks

Our AI-powered recommendations carry additional risks:

  • AI models may produce inaccurate predictions
  • Market conditions can change faster than models adapt
  • Technical failures may interrupt automated trading
  • Model performance varies across market cycles
  • Black swan events may not be anticipated by AI

Market-Specific Risks

Equity Markets
  • Company-specific risks
  • Sector concentration risk
  • Dividend cuts or suspensions
  • Bankruptcy or delisting
Options Trading
  • Time decay (theta risk)
  • Unlimited loss potential
  • Complex strategies require experience
  • Assignment and exercise risks

Technology and Platform Risks

  • System outages may prevent trading
  • Internet connectivity issues
  • Data feed delays or inaccuracies
  • Cybersecurity threats
  • Software bugs or glitches

Leverage and Margin Risks

  • Margin calls may force liquidation at unfavorable prices
  • Interest charges on borrowed funds
  • Potential for losses exceeding initial investment
  • Forced selling during market stress

Regulatory and Tax Risks

  • Changes in regulations may affect trading
  • Tax implications of trading activities
  • Pattern day trader rules and restrictions
  • International regulatory differences

Risk Management Recommendations

Best Practices
  • Diversify your portfolio across assets and sectors
  • Use stop-loss orders to limit downside risk
  • Never invest more than you can afford to lose
  • Regularly review and rebalance your portfolio
  • Understand all investments before committing capital
  • Consider your time horizon and risk tolerance

Questions about risks?

Contact our risk management team at support@tcapital.biz