Watchlist for stocks: A closely-followed list of stocks that you potentially want to invest in. Learn how to set up a list of stocks and why it’s important. This article may contain affiliate links.
To be a successful investor, you must be well informed and prepared to act decisively.
If you are not prepared in advance, you might end up making poor investment decisions.
This is where a watchlist for stocks comes in handy.
It can help you stay on top of your portfolio and be ready to take advantage of opportunities.
In this article, I will teach you what a watchlist for stocks is and show you how to use it to monitor potential investment opportunities.
Let’s dive in.
What Is A Watchlist For Stocks?
A watchlist for stocks is a list of stocks that you monitor in order to be prepared for trading or investment opportunities.
Basically, it’s a closely-followed list of stocks that you potentially want to invest in. They are usually stocks that you have already analyzed.
A good stock watchlist will include stocks that fit your investment strategy and stocks you want to keep an eye on.
Furthermore, a stock watchlist can be tracked through an app, on a website, via your brokerage, or manually in a document, note, or written on a piece of paper.
What Is The Point Of A Watchlist?
In short, the purpose of a stock watchlist is to track stocks you want to buy.
If you track stocks you are interested in buying in advance, you can be prepared for unforeseen circumstances and opportunities.
For example, if the stock price suddenly drops because of some unexpected news event, you will be aware of it. As long as the fundamentals of the company have not changed, the price drop could be a buying opportunity.
Also, monitoring the price of a particular stock can help you determine a good price to buy it at. After watching a stock for long enough, you can get acquainted with its range and how it trades from day to day.
In addition, a watchlist for stocks can will help you refine your investment strategy. By keeping a watchlist, you basically force yourself to follow and analyze stocks that you potentially want to invest in. Over time, it will help you realize what stocks fit your investment strategy.
Another good reason to maintain a watchlist is to track stock-related news. Typically, I review my watchlist daily to check for any new information. It’s an easy way to stay informed about earnings releases and any information that may affect stock prices.
Lastly, maintaining a stock watchlist will save you time. Instead of having to search for new stocks to buy every time you are ready to invest, you already have a list of stocks to reanalyze.
If you dollar cost average into positions, a watchlist is an excellent way to know which stocks to buy.
How Do You Make A Watchlist For Stocks?
Fortunately, making a watchlist for stocks is easy.
As I mentioned earlier, you can maintain a watchlist through an app, on websites, via your brokerage, or even manually.
Personally, I maintain multiple watchlists on apps and through my stock brokerage account.
To create your own watchlist for stocks, start by choosing the method that works best for you.
If you prefer to track stock prices on your phone, consider the Apple Stock App or the investing.com app.
If you want to follow stocks on a desktop, Yahoo Finance is probably your best bet.
Alternatively, you can just use your brokerage account. Most brokerages include the ability to create a watchlist within their platform. I have multiple watchlists in two of my brokerages (WealthSimple and RBC Direct Investing).
If you prefer a manual option, that’s fine too. Open up a Microsoft Word or Apple Pages document and start your list. You could even write down your list on paper if you prefer the old fashioned way.
What Is The Best Free Stock Watchlist?
In my opinion, the best free stock watchlist options are the Apple Stocks App or Yahoo Finance.
The Apple Stocks App is fluid and intuitive to use. It’s a free app that is preinstalled on iPhones.
For Android users, consider the investing.com app or the Yahoo Finance app.
Alternatively, if you prefer to track on a desktop, Yahoo Finance is the option to go with. The Apple Stocks App actually obtains its data on stocks through Yahoo Finance.
How Often Should You Monitor Your Watchlist?
How often should you monitor your watchlist?
It depends on your investment temperament and how dedicated you are with investing.
In my case, I check my watchlists daily because I enjoy following the markets. I like to see the price fluctuations and be informed about what is happening.
However, if you are the type of investor that is bothered by price fluctuations, it is probably better to check it less often. Perhaps once per week or a few times a month instead of daily.
This way, you will remain focused on long-term investing and not as much on the daily movements.
At the very least, you should check your watchlist whenever you are planning to invest.
If you check your watchlist prior to investing, you can invest in the best valued stock from your watchlist each time you buy.
Watchlist For Stocks – Final Thoughts
In summary, a watchlist for stocks is a closely-followed list of stocks that you monitor to be prepared for trading and investment opportunities.
The main purpose of a watchlist is preparedness. It helps investors stay informed and act decisively when investment opportunities arise.
Moreover, a stock watchlist can be tracked through an app, on websites, via your brokerage account, or manually in a document or on a piece of paper.
If you are looking for free options to track stocks, the Apple Stocks App as well as Yahoo Finance are great options to consider.
Now I’d like to hear from you.
Do you maintain a watchlist for stocks? If you do, which platform do you use?
I’d love to hear your thoughts in the comments below.
Other Articles On Investing You Might Like
Best Stock Apps: 4 Must-Have Apps For Tracking Stock Prices
How To Find Which Stocks To Buy
Best Websites For Stock Research: 6 Websites To Analyze Stocks
How To Monitor Investments: 9 Fool-Proof Ways To Stay On Top Of Your Portfolio
I am not a licensed investment or tax adviser. All opinions are my own. This post may contain advertisements by Monumetric and Google Adsense. This post may also contains internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.
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