QuantaFundaTechna is the short name I found best to describe the process we use to uncover the stocks that will eventually qualify for portfolios. Just as is described, the first step is to find stocks that meet certain requirements based on several screening, or quantitative criteria. For the core portfolio, initial candidates will be selected from an active screen filtered for size, sector, earnings growth, rating, corporate structure and price momentum.
Several key fundamental overlays are then added to further refine the list.
Then, a review of the company’s fundamentals will help to further weed out those companies that do not meet the requirements for stocks that do not show long-term price appreciation potential.
Once past this stage of the process, each stock is reviewed and confirmed for price entry and exit points using analysis of historical charts also known as Technical Analysis. Several patterns have shown to be key when looking for breakouts and breakdowns. As the goal is to maximize returns through a systematic and disciplined approach, loss minimization is essential. In other words; let the winners run and cut the losers.