Stock Trader

William D. Sergautis, Principle and founder of StockTrader.net, has over 20+ years of experience in the investments and trading industry. He Started as a commodities futures broker in 1981. He learned the power of technical analysis trading commodities but soon moved into stocks, bonds and financial planning with Prudential Securites in Toronto. Bill has held various role throughout his career, including Branch Manager for Cardinal Capital and Branch manager of Brookstreet Securities in Aventura, Florida; Bill has seen thousands of accounts traded under various market conditions. StockTrader TM is licensed to do business in FL, CA and NY. If you are looking for advice or stock picks in any other location please contact a registered investment advisor in your home state.

The question is, do you need professional help in order to design and stick to an effective financial plan? To some degree, this depends on your unique situation, but most will find that they are better off seeking the information, expertise, experience, and discipline provided by a financial advisor

While the Internet’s easy access to information has helped to make it feasible for individuals to independently manage their finances, the magnitude of investment skills and information that you need can be overwhelming. The financial world is filled with foreign concepts, esoteric language, legal rules, and difficult methodologies. Whether you want to develop a portfolio, plan for retirement, pay for college, or reach any other major financial goal, there are professionals who have spent their careers serving people with the same concern, and it is a good idea to take advantage of their experience.

One of the issues that has come up recently is whether or not to get into buying stocks. On one side are the investors that swear now is the time to take advantage of the investment bargains. On the other side are those who think that it’s time to get out of the stock market. Where you fall on this issue largely depends on your long-term view of stock investments as compared to other investments. It also depends on your investment risk tolerance.

Risk tolerance

Financial risk management is vital to a healthy portfolio. As you might guess, risk tolerance is a reflection of how much risk you can handle in terms of investing. Some people have a higher risk tolerance — and can better handle the possibility of loss — than others. However, there is a little more to risk tolerance. Risk tolerance can be broken down into two main categories:

1. Financial risk tolerance measures how much risk you are financially capable of taking on, according to your money situation. Financial risk tolerance is a fairly straightforward assessment of what you can handle. Can you afford to put that money in the stock market and not use it for at least five years? Would losing the money you put into an ETF financially devastate you? This principle even works when you consider buying a home or making some other type of expenditure that requires a financial commitment and possible risk. Financial risk tolerance is running the numbers and figuring out how much risk you can afford. It’s a reasonably objective process that is difficult to argue with.
2. Emotional risk tolerance, though, is purely subjective. It deals more with your visceral reactions to what is going on. You might have enough money to invest $2,000 in a stock, but if you are extremely concerned about everything that is going on right now, you may not be able — emotionally — to handle the stress involved in watching the losses mount until the market pulls out of its tailspin. Your emotional risk tolerance speaks to the level of distress you feel when making investments. Venture capitalists generally have a very high emotional risk tolerance: They can handle the uncertainty that comes with risky investments, and they can recover emotionally when things don’t work out as they expected.

The key is to create an investment strategy that allows you to grow your money in a way that you can afford, while at the same time not causing you undue emotional discomfort and stress. Worry is a natural part of investing, but you should not commit to investments that cause you unhealthy levels of stress. If the thought of currency market or futures market volatility makes you ill, or if you can’t afford the potential losses that come with heavily leveraged investments, stick to stocks, funds and cash.

It is important to note that financial risk management encompasses a partner relationship as well. You and your life partner should discuss risk tolerance and what you are comfortable with. Investment decisions should be made together, and you should compromise between your risk tolerance levels. If you have a high emotional risk tolerance, but your life partner doesn’t, you may have to find some middle ground. It can strain the relationship if one of you becomes stressed over potential investment loss.

Managing your investment risk

In some cases, you may need to accept a little more risk in order to grow your wealth. In such cases, you can temper your emotional response to financial risk with a balanced portfolio or with investments that carry different levels of risk. Mutual funds and index funds add diversification that can help mitigate some (but not all) of the financial risk with investments. Separately managed accounts also provide opportunities to experiment with different levels of investment risk. An emergency fund, or large savings, can also help provide peace of mind when there is concern with regard to investments.

Carefully assessing your options and making a plan that take into account your financial risk management profile can help you become a more effective investor.

The easiest way to complete the paperwork to open an account would be to call and have us do it for “free”. It is sometimes very difficult and frustrating to navigate the required documents for a new account. Not only that, but you need to know which type of account to open and the appropriate transfer documents for qualified accounts.  You can reach us at 1-88-TRADER-10 or through the live help section on the StockTrader.com homepage.

To print the forms needed to open a new (non-qualified) individual or joint account or a new (qualified) IRA account”, use the Stock Trader Investment Advisor forms to access these forms. This link will open the advisor authorization form and the other will open the Charttrader brochure.

If you have any questions, please Contact Us and we will get back with you promptly to answer all of your questions and/or to set up an appointment to visit with you.

The financial services industry is a rapidly changing professional environment. As the needs and desires of consumers change, firms engaged in managing money are also evolving. A registered investment advisor (RIA) manages the assets of high net-worth individuals and institutional investors, and sits on the buy side of the investment field. He or she must register with the Securities and Exchange Commission (SEC) and any states in which he or she operates.

Our Registered Investment Advisors are trained and experienced to help our clients with the following:

• Time spent devising and implementing a well-researched and sound financial plan will likely yield:
• More money for you and your family
• Better preparation and flexibility for life changes
• Increased protection against mistakes and unexpected circumstances
• An investment in financial management provides peace of mind by ensuring your best odds of permanent wealth and comfort.

This planned approach to success is the result of a multi-step process. You must:

• Set achievable financial and personal goals

• Assess your current financial health by examining your assets, liabilities, income, insurance, taxes, investments and estate plan

• Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financial strengths

• Put your plan into action and monitor its progress

• Revise your plan to accommodate changing goals, changing personal circumstances, changing financial opportunities, and changing market and tax laws

Professional financial help goes far beyond picking stocks. When you hire an advisor you are armed with expertise and resources which you otherwise would not have. This coaching and support can help you to smoothly endure and make the most of the circumstances in your life – career, marriage, children, assets, liabilities, etc.