A Good Investment Strategy is Key for Louis F. Albanese
For Louis F. Albanese, having the right investment strategy is the key to successful investing. His three principals of a solid investment strategy are identifying trends, practicing disciplined stop-loss protection, and achieving the right amount of diversification.
Louis F. Albanese knows that investors are often tempted to go on stock buying sprees during economic downturns. Some investors see falling stock prices as a good opportunity to buy cheap stocks. However Louis F. Albanese is one who always exercises caution and prudence especially in tough economic conditions. L. Albanese knows that if a company’s stock has fallen dramatically, chances are it’s not going to recover anytime soon. Louis believes that investors should rather limit their exposure during bad conditions.
“As the market trends down, investors need to reduce their exposure,” Mr Albanese adds.
Another important principal is utilizing a disciplined stop-loss protection. By identifying loss threshold and selling off investments when these thresholds are reached, investors can minimize their losses making it easier for them to recover these losses in other investments or at a later time.
“We place our clients’ loss threshold at 8-10 percent. If an investment goes down that much, it’s time to sell to minimize loss,” explains Louis F. Albanese.