Analysis

Aligned Analysis

Trade London From uses multiple methods of share price analysis prior to publication of stock specific reports: Fundamental; Technical & General Market Trend. Only when these 3 are aligned or moving towards alignment is a stock specific report constructed and issued. History suggests that alignment of these aspects mitigates some of the potential risk associated with stock market investment. It remains that stock markets and individual stocks do behave in unpredictable ways despite such research. Never can ALL risk be avoided in stock markets.

Technical Analysis

Historical stock price movements are captured by charts. Analysis of such charts and patterns portrayed are used by technical analysts to predict future price movements. There is much contention around whether this works, especially by fundamental analysts. Trade London From uses cyclical pattern analysis to determine whether a share price is likely to rise or fall, but this only starts the analytical process. Once a share has been highlighted as likely to move in the desired direction Trade London From moves onto Fundamental analysis to ascertain alignment.

Fundamental Analysis

Companies with shares floated on London Stock Exchange have to submit certain criteria surrounding their company performance as part of their enlistment. This enables greater interrogation into the strength of that company and a measure of how that company is faring when compared to like or rival companies. Information will include market share, debt levels, profitability, new product launches, key stakeholders, viability to continue trading and much more. Fundamental strength of company, when conjoined with technical likelihood are two powerful tools when worked together but general market malaise can quell a potential share price direction, regardless of how good it looks on paper.

General Market Trend

When setting out on a journey you need a route, a reliable method of transport along that route and for that route to be clear of obstruction. It is all very well having a route (technical analysis) and a reliable method of transport (fundamental analysis) but if all routes heading towards your destination are blocked (Incompatible Market Trend), then the best laid plans could still come to naught. Anyone buying shares just prior to the financial crisis would have found this out to their cost, regardless of how good the technical and fundamentals were at the time.

Trade London From looks for alignment of technical, fundamental and market trending before publishing positively biased stock specific reports.