Investment Approach
“When a man is prey to his emotions, he is not his own master.”
Who is in charge? Buyers or sellers?
The answer comes down to the basic economics of supply and demand. That is what determines price action.
Ridge Wealth Management incorporates various technical analysis tools to determine how we position our clients’ portfolios. Providing our clients' with a logical rules based investment approach assists in removing the emotion which all too often compels investors to act in an untimely manner.
While news drives markets, supply and demand determine direction of price. It is basic economics, but having a clear understanding of this one simple fact is imperative.
Unfortunately many investors become distracted with all the noise from the financial media which drives them to make emotional and often irrational investment mistakes. While no approach is 100% full proof, utilizing a rules based investment approach can make the difference in attaining your desired outcome.
Markets provide both long-term and short-term opportunities. It is prudent to take advantage of both. There is a time to buy as well as a time to sell.
Common Mistakes of the Typical Investor
- Focusing on the financial media
- Watching ones profit/loss to closely
- Checking account values daily
- Focusing on the short term
- Worrying about the “what if” scenario
- Focusing on what every other investor may or may not be doing
- Being afraid of the next correction or bear market.
- Trying to avoid volatility
This helps us to better understand so that we can navigate through this.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including the risk of loss of principal. No strategy assures a profit or protects against loss. All charts presented are for illustration purposes only.