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How to build a watchlist to track your stocks

Feb. 29, 2024
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Fred Babu
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Fred Babu

Building a watchlist is one of the most important thing you can do in investing.

A watchlist is a metric that allows you to track all the stocks that you like - that way you are able to make better decisions when the market best suits your investment strategy.

It also allows you to know what stocks to possibly buy and what price to purchase the stock/s at.

Here are 5 metrics to add to you watchlist:

 

1. Ticker symbol of each stock

For obvious reasons, it allows you to know exactly what stock you dealing with.

 

2. Research date for each stock

This allows you to keep records of the date/s you last researched the company.

 

3. Current price

Track what the current price of the stock is. This is important as it allows you to see ideally when price reaches your desired entry price range.

 

4. Fair value range

Record of what the stock is REALLY WORTH. This is also known as the intrinsic value. The use of P/E ratio also helps with this.

 

5. Target Price

The target price is what price will make you high returns. Typically +40% of the fair value price.

 

It's a lot easier to remember the stocks if you're tracking them somewhere. I highly recommend using an excel sheet to do this on.

This way, you keep an updated list of great companies you want to own.

Then when a stock drops on some shot term bad news, you can pick it up for a sale.

 


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