FMD Capital Management

Posts Tagged: sell discipline

There Are Two Ways To Beat The Market

Written by David Fabian, July 29th, 2017

Active investors are continually looking for innovative ways to beat the market.  They want to believe that some perfect combination of fundamental or technical indicators will lead to the holy grail of outperformance (otherwise known as alpha).

In the broadest sense, there are two ways to beat the market: on the upside or on the downside.  You either take more risk or less than the benchmark. Read more

Stop Fretting Over ‘Why’ Stocks Do What They Do

Written by David Fabian, September 11th, 2016

In my experience as an investment advisor and student of the markets, investors are always concerned about the “why” on the way down.  They MUST know exactly what caused a specific drop in the market and what could potentially curb that price action.   Yet for some reason, that same level of scrutiny doesn’t apply on the way higher. Read more

Ask Yourself This Question Before You Resolve To Sell A Stock

Written by David Fabian, August 17th, 2016

Every now and then I get an email from a reader asking whether they should sell a particular stock. This request typically comes in the form of an errant position that is not shaping up like the rest of the market.

For instance, maybe you own 15 or 20 holdings that are all positive on the year.  But that one persistently red security just doesn’t want to behave like everything else. Read more

Knowing When To Walk Away

Written by Michael Fabian, May 07th, 2015

Unlike a typical portfolio of ETFs or mutual funds traded at NAV, closed-end fund investors must decide from a fundamental perspective if a fund’s risk will ultimately be worth the reward.  ETF or mutual fund assets are always redeemable at an underlying asset’s current price, so as an investor it becomes easy to make educated decisions when evaluating market trends alongside the funds you own.  Read more

Refreshing Your Risk Management Approach

Written by David Fabian, April 15th, 2015

Risk management has become a buzz word in the investment business with little real world application over the last several years. The need for stop losses, hedging, strategic asset allocation, and other counter measures to traditional market cycles has been overridden by a “buy the dip” mentality. Active investors have been conditioned to wait for a little speed bump and then race into the fray with extra cash to buy up stocks and ETFs. Read more