Page 1255 - How to Make Money in Stocks Trilogy

More Tips and Tools for Getting Started Right 237

How to Build and Maintain
an Actionable Watch List

“It takes as much energy to wish as it does to plan.”

—ELEANOR ROOSEVELT

Superior results start with a superior watch list. So here are 4 steps you can
take to build and regularly refresh your list.
Keep in mind: This is just one possible approach you can use to get
started. Find whatever approach works best for you.

■ ✔ Create 2 watch lists.

• Near Buy Point: For stocks near a potential buy point or in buying range
right now.
To keep this list actionable, be sure to prune it regularly so it doesn’t
get cluttered with stocks not currently near a buy point.
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• Radar Screen: For stocks with CAN SLIM traits that are not near a
buy point right now.
You want to keep any eye on these because they could offer a buying
opportunity later.

How Do I Set Up a Watch List?

Most people set them up using tools from their online broker or trading
platform. Ask your brokerage service what watch list tools they offer.

How Many Stocks Should I Have on My Lists?

Set a limit on how many stocks you’ll have on each list. For a watch list to be
valuable, it has to be actionable. So stick to a manageable number of stocks.
You might limit your Near Buy Point list to 5–10 stocks and your Radar
Screen list to 15–20. The number depends on how much time you have to
spend on research.