"It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side."
— Jesse Livermore, a famous and legendary trader, who made and lost millions in the stock market.

What is Risk Management?

In its simplest form, risk management is the preservation of assets. There are many ways to reduce risk, including stock selection, asset allocation, proper diversification, and the timely raising of cash reserves. There are times during the investment cycle when it is imperative investors hold substantial amounts of cash.

Technical Analysis

Point and Figure charting dates back to the inception of modern market analysis, with the first published account of its use surfacing at the turn of the 20th century. Once mastered and understood, Point and Figure is a logical and organized method of determining the right time to buy and the right time to sell. We utilize a combination of Point and Figure charting, trend line analysis and relative strength to determine stop points for our stock universe. Point and Figure analysis is used in conjunction with trend lines to help us make buy and sell decisions. When a trend line is broken, it is an indication that the technical pattern of a stock or the market has changed. Relative strength is also used to determine whether a stock will outperform or underperform the market.

We strongly believe that a well-defined approach to risk management is imperative to successful investing. It is necessary to know how much risk exists in a chosen investment before funds are committed. If your current investment program is not using a proven risk management technique, then your chances of success are seriously diminished.