A stock watchlist is a list of companies you want to buy in the short term and long run. With thousands of stock trading on the NYSE, NASDAQ, and OTC, it's impossible to follow all of them unless you create a watchlist first.
Make a List of 5 to 10 Stocks You're Interested in
Creating a watchlist is easy. I normally track dozens of stocks in the Robinhood watchlist but maybe you want to start out with 5 to 10 stocks you are actively watching.
For Robinhood Users: Simply type in any stock ticker then press the “+” symbol in the right hand corner to add the stock to your watchlist.
Most brokerages have a watchlist feature or you can create one on Yahoo! Finance as well.
These several stocks should be companies you are familiar with and understand well. It makes no sense to watch a stock in a completely foreign industry because you have no idea whether the stocks are trading at a discount or not.
Start off with companies you understand first.
Follow Stocks That Fit Your Investment Goals
I tend to favor companies in industries I understand very well like technology, travel, internet or finance. If you aren't sure about stocks to add, then try these helpful tips.
Here's the kinds of stocks I like to add:
- Stocks of companies I personally use – I use Netflix and Roku daily so I add these stocks to my watchlist. It's much easier to add companies you personally use or like to track their stock price
- Stocks that are currently on sale – Theses are companies facing tough times ahead, dealing with tons of bad press or simply in the early stages of a transitional period
- High dividend stocks – For dividend growth investors, you can track your favorite dividend stocks very easily.
Here's a video with some more helpful ideas on creating the perfect stock watchlist: