The Cycle of Emotional Investing
“Buy Low, sell high” is likely the most recognized cliché when it comes to investing. Yet, individual investors seem to do the opposite. When times are good and people are brimming with confidence, top dollar is paid to get in the market. Conversely, when market prices fall, investors become discouraged and lock in losses by selling their holdings. This kind of emotional investing can quickly erode performance.
At OmniStar Financial Group, we believe active management provides the agility necessary to respond to a dynamic market and our disciplined process eliminates emotional decisions. Rather than follow conventional Wall Street wisdom of staying fully invested regardless of market risk, we construct and manage our portfolios using a combination of fundamental and technical analysis. Our disciplined approach attempts to break this cycle by focusing on fundamentals and objective research produced by our analysts every day.
Unbiased Advisors like OmniStar Financial Group do not bring companies public, advise companies on mergers and acquisitions, broker trades, make markets in stocks or use proprietary products. Our rules based management avoids investing on emotions or unverified information. Attempting to improve returns while lowering risk, we consider Market Movement, Economic Outlook and Technical Data when designing or adjusting our portfolios. Unlike a traditional buy and hold strategy, we believe that risk can be further mitigated by avoiding equities that no longer meet our strict criteria. This highly disciplined process attempts to actively grow assets and reduce risk by decreasing or increasing riskier assets as warranted by technical and economic conditions.