Active Portfolio Management – How We Do It!

Research Financial Strategies specializes in providing financial advice using a proprietary investment methodology that leverages technical analysis to identify and protect our clients against stock market risk.

Our Approach to Investing

Research Financial Strategies provides our clients with a reproducible, non-emotional investment process using technical analysis to monitor market risk within the industries, sectors, and our actual investment decisions. It starts first with understanding our client’s financial goals & needs and helping them plan for the future. Below is an overview of RFS’s investment process.

Technical analysis is an emotionless investment decision making process that does not allow for getting caught up in the company or industry story. Investments are made through a series of technical factors. The most notable factor is one called “relative strength.” When a security price shows a recognizable pattern of higher highs and higher lows it demonstrates that there is higher demand than supply for that security. This means that the “buyers” are in control and not the “sellers.” While we cannot guarantee investment performance, securities that demonstrate this technical behavior have a higher probably increasing in value.

Determining Investor Suitability

As investment advisors it is our fiduciary responsibility to make sure we understand each of our client’s investment tolerance and risk profile. Research Financial Strategies has the unique capability to create unlimited customized asset allocation blends for our diverse client base. 

Determining When to Invest

The oldest law of economics is supply and demand. At Research Financial Strategies, we place a premium on when to make an investment decision based on price movements using technical analysis. Technical analysis is an emotionless investment decision making process that does not allow for getting caught up in the company or industry story. Investments are made through a series of technical factors. The most notable factor is one called relative strength. When a security price shows a recognizable pattern of higher highs and higher lows it demonstrates that there is higher demand than supply for that security. This means that the buyers are in control and not the sellers.

Determining When to Exit an Investment

Our ability to minimize portfolio risk for our client is a result of having a Sell-Side Discipline. Prior to investing in a security we establish an exit point based on the % of loss or price our investment advisors determine is acceptable. If the security price is violated then it is sold. This ensures that profits are protected for our clients, or worst case, risk to principle is minimized. Only through having an investment approach that has a pre-determined exit strategy for each investment position, can you mitigate portfolio risk during market corrections.