Prior to making any client recommendations, we consider it vital that due diligence is carried out on assets or products we have recommended. We would never recommend a security without examining it from a range of financial perspectives.
Our analysts are adept at delving into and analyzing the intricacies that are often obscured in a company's financial statements and cash flow forecasts. They employ technical analysis which allows them to advise on the optimum time to acquire a stock in relation to its position in the long-term trend in its price.
There are a few in the investment industry who regard technical analysis as being little more than guesswork. However, our analysts carry out these studies regardless as their comprehensive knowledge and skill of objectively evaluating TA has played a significant role in our clients achieving consistently high returns.
Technical analysis is about the identification of THE PRICE ACTION OF a security. This analysis takes the price of a security and the volume of trade over a given period to deduce the market's opinion. It includes all information relative to it, which means studying annual results, profit margins, earnings and, perhaps less reliably, rumors relating to a forthcoming merger.
Technical analysis is also used to recognize trends in stocks or the global financial markets and it can also be applied to other sectors such as real estate.
Trade Inc.'s analysts also utilize the power of fundamental analysis. News is one of the key drivers of the markets but instead we focus on long term investing and accordingly we pay far more attention to a company's sales, debts and earnings.
Fundamental analysis therefore represents the "forensic" side of our analytical and research methodology. We take an in-depth look at the operations of a company, evaluate its management style and how it runs its business. We also examine industry sectors from a broad perspective, setting out to form a complete picture of how a subject company might perform in the future.
It is always wise to take a step back from technical and fundamental analysis and look at the market from an uncomplicated viewpoint, as it is sometimes tempting to over-analyze, which lends itself to making the process more problematic and difficult.
Anecdotes can be useful indicators of how markets combine with the collective psyche of an economy and Trade Inc.'s analysts always pay them good heed. It is common for the print media to be late in delivering important news, and by the time you read or hear about it, the time for action would already have passed. For example, we use anecdotes to explain the end of a bull run, such as the real estate boom. It was at this point, people started to rush into the property market due to the banks offering them irresponsible income multiples, when really it was just the time to exit.