Building A Profitable Watchlist

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Stock Investing Hub ⮞ The Tipping Point ⮞ Building A Profitable Watchlist

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BONUS RESOURCES

⮞ Introduction
⮞ Building A Profitable Watchlist

Building A Profitable Watchlist

By now, you should already know the following:

What to buy using the 8 Point Checklist
When to buy using the "Thermostat Method" to valuate stocks
How much to buy using the Portfolio Diversification Guideline.
When to Sell using the "3 Reasons To Sell Stocks" Guideline

Putting Everything Into One

Now that you know everything you need to know, the next step is to take action.

Because, let's face it - knowledge is only power, when you actually use it.

You probably heard of the saying, "Complexity is the enemy of execution".

Which is why, I wanted to simplify what you have learned so that you are more likely to take action in your investment journey.

The answer to that? A shopping list.

Or what I usually call as a Profitable Watchlist.

What if you could just build a list of stocks so that you know exactly what to buy and when to buy it.

The way to take action is to simplify what you have learned.

Building A Profitable Watchlist

However, a profitable watchlist is one that tells you when to buy and when to sell.

An example of a watchlist looks like this.

The definition of watchlist is a list of stocks that you are watching out for, with the intention to buy.

Let's go through each column one-by-one.

The companies reflected in the watchlist are found using the 8-Point Checklist - and they need to have a score of at least 5 out of 7.
The current share price is how much the stock is selling in the stock market right now.
The intrinsic price is calculated using the thermostat method.
The entry price is calculated by multiplying the intrinsic price with the margin of safety. The margin of safety is calculated using the checklist score.
The stock is considered undervalued when the entry price is lower than the current share price.
The exit price is calculated using the growth rate of the company multiply by the intrinsic price. See the last section of "3 Reasons To Sell A Stock".

Can you see that once you have build this entire watchlist up - you can pretty much have no need to second guess your investments, because you already know when to buy and when to sell.

Of course, not to forget, you need to buy with the proper portfolio diversification as well.

And also, remembering to enter in tranches - see "Power of entering in tranches"

When investing in stocks, we want to enter in tranches whenever the stock drops between 10 - 15% of our entry price.

What's Next?

This marks the end of the Stock Investing Hub.

What really got me started was that I realized beginners investors who are just starting out often fall into the trap of hot stock picks without having a system to filter their stock investment decisions.

I really hope that by creating this free resource - it also helps beginner investors grow their wealth through the stock market.

However, I also know that all these information only can make a change if we actually take action. This is why I created the Profitable Watchlist Challenge - where you will be challenged to build your own profitable watchlist and to take action.

If you like to find out more about the challenge, click on the button to find out more about the challenge - to implement what you have learned.

Find out more about the challenge

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