Fairmont Equities Introduction

Fairmont Equities Introduction


Over many years as a professional stock broker
and adviser, I’ve observed that most investors get it horribly wrong. Sadly, only a minority beat the ASX200 by
a decent margin. Most investors make small returns and often
lose money either because they’ve missed buying opportunities or got stuck with losing
positions. My name is Michael Gable. Having worked for Macquarie Bank for a number
of years, and experienced the GFC’s devastation, I realised that traditional stock analysis
was one sided and woefully inadequate. Like most investors, including professional
stock advisers, they focus on either the fundamental strengths and weaknesses of a company or daily
trends and volatility in the market, but never do both simultaneously. As a result they get a skewed view of that
stock. This is how it often plays out. Using a stock chart to look for trends you
buy a cheap stock which seems like a good deal. You think it should start going up, but prices
keeps falling so you lose money. Or you hear about a company which sounds good
on paper. Maybe it’s been featured in the media. And small mining companies were a prime example
a few years ago. You get in, thinking you’ve done well. But the stock goes nowhere and often you lose
everything. If this is you, it’s not your fault. Probably no one has shown you the right way
to go about doing it. Certainly not the media. So to consistently make money in the stock
market you have to understand and balance these two radically different forms of analysis. The fundamentals and the technicals. Fundamental analysis, as the name suggests,
attempts to determine the health and performance of the company by looking at key numbers and
economic indicators including earnings growth, debt levels and market share. Do they have a product that people want to
buy? Are they being speculative as in the mining
companies? Is their management structure solid? What’s their capitalisation? Technical analysis involves analysing the
supply and demand of a stock and how emotions are driving its price higher or lower. By understanding this, you can identify when
stock prices are running ahead of themselves or if they are being oversold. Now your investment philosophy may be buy
and hold, so you believe technical analysis is for short term traders only, or vice versa. But here’s why you should combine both methods. When analysing complex companies, it is essential
to incorporate both fundamental and technical data in order to obtain the most accurate
picture of a company’s position. Our experience consistently proves that utilising
both fundamental and technical analysis will provide an edge over the average investor
who gets average returns or below average returns and higher losses. Obviously while rates of return vary depending
on your risk profile, we’ve achieved between plus 13 and 16 percent returns above the ASX200
for clients while the ASX went down 3% during that period. So if you’d like to improve your returns
there are 3 ways we can help. Start by reading our free guide on how to
use fundamental and technical analysis to improve your returns. Then join the ranks of thousands of investors
who trust and rely on our investment strategies every week! And if you’re a serious investor, ask us
about our free portfolio reviews where I’ll analyse your stock portfolio and I’ll give
you recommendations where you should be improving and you’re at risk. All of these options are available at fairmontequities.com.

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