What’s our approach?
Investing on the various financial markets can seem a little daunting to
the newcomer. This is to be expected given how quickly the markets can move.
There is so much information available and market commentators can often seem
to contradict each other so investing can appear confusing. To help you, Anacott
has an ongoing policy of subscriber education; we feel that this is a very
important part of the services we offer.
The only true method of ‘winning’ for stock market investors
is the ‘buy and hold’ approach over a long period of time. People
who adopt this approach are INVESTORS and will perform fundamental analysis
of the company before investing. They are not concerned with daily or weekly
price movements but are investing for capital growth over the long term. The
Anacott strategy also adopts this kind of approach before making a selection;
however we also know that during the course of events any stock will go up
and down in price which also enables us to trade those peaks and troughs for
higher returns than if we just bought and held.
There are two factors that determine the price of a stock; a) the earnings
per share and assets of the company in question and b) supply and demand for
the shares. The former is fundamental analysis (long term view) and the latter
is technical analysis (short term view).
A TRADER is more concerned with technical analysis and short-term chart
patterns than whether the company is going to be around in the next 5 to 15
years. They will use a whole host of chart analysis tools to enable them to
try and guess the direction of the stock price in the short term. At Anacott
we certainly use technical analysis to determine entry and management points
for positions but we combine this with our earlier fundamental analysis of
the stock.
When we buy a stock or LEAPs we are buying an asset and just like any other
asset purchase we must do fundamental analysis of that asset for the long
term. It’s just like purchasing a property; you would not make that
purchase without having the relevant inspection and valuation reports done
first, would you? We will then do technical analysis to see if the ‘timing’ of
that purchase is right and that there is no bad news on the horizon. Again,
like a property purchase you would do the relevant neighborhood checks to
see if there had been a recent spike in prices or if there were any plans
to build a freeway, prison or chemical plant in the vicinity.
So once we have purchased our asset we want to generate some returns from
it, we do this by selling a depreciating asset (Calls). This gives us downside
protection and thus eliminates the need for stop-losses and gives us a healthy
return if the asset appreciates in value.
In summary, we know that good fundamental stock picks should appreciate
over the long term and that the price of that stock will go through peaks
and troughs. So we can be INV-esters in the company for the long-term and
then also tr-ADERS in the inevitable price movements in the stock giving us
enhanced returns.
This truly makes us stock market INVADERS! You can check our performance results by clicking HERE.
Need a Free trial to help you decide?
We have a 30 day free trial so
you can try out any or all of our strategies before you commit yourself and
if you have any questions we have a ‘Live Help’
facility available where you can chat to one of our operators
on line. There is also a knowledge base where
you can look at the most frequently asked questions or pose a question of
your own. You can also subscribe to our free weekly newsletter,
which gives a full analysis of our benchmark portfolio – this is a ‘typical’
subscriber portfolio for each service and amongst other
things, there is a question and answer section where you can see questions
posed by other customers. We have a policy of full disclosure and you can
see all of our closed position results on our results page
and details of all our open positions can be found in our free weekly newsletter.
If you want even more information on our strategies and approach you can always
purchase our E-manual “Trade Covered
Call and LEAPS: The Safer Options”.
There is ‘Hands free’ auto-trading available
You can be as involved as you want to be in the running of your portfolio.
You can choose to either self-trade, actioning all the buy and sell alerts
for yourself, although not everyone has the time or desire to sit at their
computer all day trading. So we can offer you the facility to auto-trade our
suggested trades with some of the leading on-line brokerage companies. With
auto-trading you set up your portfolio details with your broker in advance
and he trades our suggestions on your behalf. You need to keep a watching
brief on your portfolio but that is all. This takes away the need to understand
how a trading platform works or watching the market waiting for the right
prices to come up!
What strategy is best for you?
So the next step is too look at our different strategies and see which is
best for you given your attitude to risk and the amount of investment capital
you have available. Click here. |
