We closed out the QQQ (NASDAQ 100 ETF) long/short positions yesterday. This morning we just sold RSP, ROBO and UBOT due to weakness in their respective sectors. We are still holding the S&P-500 long/short combo to neutralize our models and to not incur capital...
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.
Most Popular Financial Stories
Special Market Update
EVs―The Next Big Thing
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Veterans Day 2022
Join us in honoring Veterans Day and recognizing the deeply appreciated service of the U.S. military.
The World’s Chip Crisis
This is the most important article you will read this year. It is the details behind what we wrote about in Tuesday’s email. China wants Taiwan. Not to “reunite with the motherland”, and all the other BS reasons they dream up. There is one reason, and only one. ...