When it comes to stock trading, knowing your investment goals and risk tolerance is crucial. That, along with your time frame, will help us determine how your stock investments should work with the rest of your portfolio. To help with selection, we combine fundamental and technical analysis before we make any stock recommendation.

A select group of our clients enjoy being actively involved in the stock trading process. While this is rare, when it does present itself, we work together like a partnership to decide which stocks to own, and which to avoid. We also offer various options-trading services to our clients.

Stock investing can help your investment portfolio by providing potential growth, income from dividends or a combination of both. But always remember, the value of any stock can fluctuate, it may be worth more or less than what you originally paid for it.

Develop a Diversified Asset Allocation Strategy

When selecting stocks to purchase, carefully consider the challenges of equity investing, and develop a diversified asset allocation strategy that aligns with your goals, time frame, and risk tolerance.

When holding a stock portfolio:

  • Invest in approximately 20 to 30 stocks in at least six to eight sectors with different investment characteristics.
    • The essence of effective portfolio construction is the use of a large number of poorly correlated assets
      William Bernstein, author of The Intelligent Asset Allocator
  • No more than 15% of the total value of your stock portfolio should be in any one sector.
  • No more than 5 to 10% of the total value of your stock portfolio should be in any one stock.
  • You should have an exit strategy in place before purchasing any equity security.

Deciding which stocks to invest in can be challenging, especially if you have a low tolerance for value fluctuation. That is why it is important to first evaluate how much risk you can endure. We use a proprietary in-depth questionnaire to help you discover this. Next, research the equities that fit within your strategy and invest in companies that have the potential to meet your specific goals.

Your Investment Consultant can provide you with a wide range of stock investing services, including:

  • Asset allocation strategy development
  • Individual stock selection through unbiased research
  • Help in deciding when to buy and sell your stocks
  • If and when to put stop losses on trades
  • If and when to sell covered calls to generate income
  • If and when to buy puts to protect gains