Sponsored Link:
Stock Watch List
The Smart Profits Report: Issue #445
Tuesday, August 7, 2007
Stock Watch List: How To Track The Best Stocks And Win
By Marc Lichtenfeld
Senior Analyst, Mt. Vernon Research
For four years now, investors have reaped the rewards from a very generous stock market.
Over that time, we haven’t seen a correction of 10% or more - a truly impressive feat. And as share prices have zoomed steadily upward, you haven’t had to look very far to find bloated permabulls breathlessly calling for more. Talk about collective amnesia! Seems like someone forgot to tell these folks that stocks go down as well as up, which is why I don’t dress up in silly party hats whenever the market hits a new milestone.
Likewise, when it drops precipitously - as we’ve seen it do recently - there’s no reason to shift into bear mode. There are always moneymaking opportunities available - and if you use this remarkably simple and effective stock watch list method, it’s much easier and quicker to find them when needed…
Stock Watch Lists: Scan The Radar For The Leaders And Laggards
Whenever the market soars or crumbles, I always make a point of checking out the extensive list of stocks I have on my stock watch list to see if I can take advantage of the move.
Many times, market volatility actually presents a great opportunity to enter positions at better prices. For example, a stock might be oversold and primed for a run the other way. Conversely, maybe a position is overbought and due for a pullback.
Keeping a stock watch list is a simple, yet remarkably effective thing you can do. It keeps you focused, disciplined, and ready to take action faster than if you start from scratch.
For example, as I watched the market come back to earth, I scanned a list of stocks at 5:00 A.M. the other morning - and thought my bleary eyes were deceiving me. Up popped a biotech firm that I’ve had on my radar for some time now - one that may have the answer to a disease that could reach epic proportions over the next 20-30 years.
It’s not that the stock trumped the market and rose during the selloff. It declined with the broader market by 12%, actually. But while most investors might blindly follow the crowd out the door, I was happy. It’s noteworthy that it did so on no negative news. In fact, the fall occurred despite the company beginning two clinical trials.
The stock has now dropped almost $3 to a very attractive price - and I plan to recommend it to subscribers in the next Xcelerated Profits Report issue. Chalk up another stock watch list winner.
The Tools To Make You A Better Investor Are Out There… So Use Them
Having a stock watch list is a simple concept. And having a shortlist of potential companies to choose from when it’s time to pull the trigger can be a real timesaver. Of course, you still need to do your due diligence and revisit your detailed reasons for buying, but you’ll have a good headstart on the crowd if you have candidates. And when the market and individual stories change, you can add and delete from your list.
Ever since I started investing, I’ve kept a list of stocks that I’m interested in buying (or shorting) but either couldn’t or wouldn’t. When I was right out of school, it was simply a case of not having the funds. But now, other factors come into play:
- Maybe the price is too high right now.
- Maybe the market conditions aren’t right.
- Or maybe the company simply isn’t profitable.
But many financial/investment websites like Yahoo! Finance and online brokerages have simple tools these days that alert you when a company has news or the stock hits a certain price. You can also enter your stock watch list data into an Excel spreadsheet that will help you calculate hypothetical returns rather easily.
A Stock Watch List Ensures No Opportunities Are Missed
Regardless of whether you go low-tech or high-tech, a stock watch list is an incredibly useful tool. Not only will it help ensure you don’t miss an opportunity in a stock that you’re keeping close tabs on, it will help you evaluate your own strengths and weaknesses as an investor.
Be sure to review your stock watch list and your reasoning at least on a quarterly basis (even the stocks you’re no longer interested in). No doubt you’ll have a few, “What the heck was I thinking?” moments as you’ll have the benefit of 20/20 hindsight. But it’s a good lesson that will only make you a better investor going forward.
Hoping your longs go up and your shorts go down,
Marc Lichtenfeld
|
Today’s Smart Profits Action Center
- A tip for selecting top stocks: Keeping a stock watch list is a great way to stash away investment ideas that you can revisit on an ongoing basis. But how do you know which stocks to watch? It’s critical that you diversify: Include stocks from a broad range of sectors and industries, and make sure you select both large-cap and small-cap stocks. This will allow you spread your risk and lower volatility - more important than ever right now, with the stock market wobbling.
- For more information on the Xcelerated Profits Report and to get in on that new biotech firm with a very attractive price, click here.
- Don’t limit your stock watch list to just stocks either. Ensure that you maximize your moneymaking opportunities by including safer investments like Treasury bonds, high-grade bonds and gold investments - all part of a prudent asset allocation strategy. Find out how to execute this just like a pro in this special report - plus receive 30 other top strategies of America’s wealthiest, most successful investors.
Related Articles:
- The VIX and VXO: How You Could Have Predicted The Market’s Recent Meltdown
- Market Transitions: The Three Main Market Conditions, and a Plan for Each
- Improve Your Investing Results: Your 8-Step Checklist To More Successful Investing
