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At Stockexam, we focus on an integrated approach to fundamental, technical and environmental analysis. We take care to perform the detailed fundamental company analysis required to support sensible investment strategies while determining the technical nature and related environmental factors of the investment.
Although the exact approach is proprietary, in general we start this process by starting with the environmental analysis. When we refer to environmental factors, we are really talking about the market as a whole, related sectors, and industries. Environmental factors are responsible for about 50% of whether or not a stock will appreciate. Even good stocks have a tendency to drop when the market/sector is down. Once the current and future environmental factors have been defined, thus defining groups of companies, fundamental analysis begins followed by the technical and the definition of related internal and external catalyst. During this process risk levels, entry & exit criteria, and timeframe are determined, setting the thesis. Once we define our thesis or reasoning for an investment we will not modify the criteria. If the results do not match the thesis, we will recommend exiting the investment immediately. Sometimes this will leave money on the table, but more often than not it protects your investment from a serious loss.
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