If the plan is the chassis, investing is the engine
It's been said you work for your money, so make sure your money works for you. Ultimately part of almost every financial strategy involves investing in some form to put your money to work. At Littlejohn Financial Services, we follow a few simple rules:
- DON'T take any more risk than is required to meet an investment objective
- Be willing to sell an investment while you still have a profit
- Avoid large losses by playing good defense
Use discipline rather than emotion to guide our decision making process.
Technology is Changing the Way We Invest
The principals involved in investing are essentially unchanged, but the tactics for investing in today's modern markets are dramatically different.
FACT: The number of shares traded in a single day for some stocks is
greater than an entire year's worth of trades for the entire stock market just a few decades ago.
What does that mean... The markets have never been more liquid than they are now. Markets can move by several percent throughout the day with a simple change in the news. Volatility is a factor! It is estimated that more than half of all trades on today's stock exchanges are generated by computers and algorithms. The human interaction with the market has drastically changed as well.
We manage "RISK" by
limiting the downside.
We play good defense!
Investing involves risk, including the loss of capital.
LjFS Strategies cannot guarantee against losses.
Hypothetical Example, not a specific investment
Investments are inescapably linked to risk. Risk is just jargon for volatility, which is just another way to say "price fluctuation". There are only three things you can do with risk: Manage it, Transfer it, or Ignore it. If the word "RISK" scares you, don't bury your head in the sand like an ostrich. We believe in managing risk and if you would like to understand how we manage Risk , give us a call (541) 375-0898.