Hey folks, I always wonder how many of you keep a watchlist! And, if you do keep one, how many stocks are on your watchlist?
Most people I've spoken to assume that investors keep a variety of stocks on their watchlist to gradually invest in them. While a watchlist can be used the same way you use a grocery shopping list to avoid forgetting the items you need, there are two magical ways to use a watchlist. One watchlist for the time when the market is going up and then another one for when it goes south.
When the market goes up:
When the market is growing, the most challenging task is to eliminate faux-winners. A faux-winner is a company operating in an organically growing market but doesn't have a strong operational foundation. A watchlist is like an internship for your portfolio. You add a stock to your watchlist to give it a chance to prove it is more than just a company with growing sales and to earn a spot in your portfolio.
This week, I added the following few stocks to my portfolio internship (ahem... watchlist):
When the market goes down:
When the stock market crashes, a watchlist keeps the emotions in line. While most people panic in such times, the majority of the more experienced investors get excited. Maybe too excited and start buying anything and everything in the hope to buy things low and sell them high later. But not all companies will survive a market crash. Only a small portion of investors who have put together a watchlist of well-operated companies will get out of a market crash prosperously. By keeping a watchlist of well-operated companies, the investors will be able to seize the opportunity of a crash and pick only strong companies at much lower prices. A robust watchlist is where master investors set their path aside from the newcomers.
You can create a watchlist on StockCard.io's MyPortfolio tab to feel the power of having a watchlist at good times and bad! Check it out!
A Few Of Other Stocks On Our Radar:
Thanks, Alex Bush, Gloria Cox, Manson See, Michael Dickson, Jeffrey Leichenger, Anand Dandekar, and the members of our intelligent investors' community for this week's Stock Card requests. Join these intelligent investors, and request a Stock Card sometime next week and submit a request.
That's it for this edition of Stock Card Weekly! Forward it to your friends, so that we stop asking you to do so!