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.
is Risk Management?
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, we study market and individual stock movements.
Chart analysis reviews supply and demand, accumulation and distribution.
We are concerned with the right time to buy and the right time
to sell. Investors spend most of their time deciding what stocks
are suitable for purchase. They spend very little time thinking
about when and under what circumstances their stocks should be
sold. Given the heightened volatility of the stock market, a successful
risk management strategy should not only include fundamental analysis,
but a sound technical component as well.
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.
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