There are a number of great tools you can use to simplify and streamline your investment process. An investor armed with agood stock screener, aninvestment checklist, and a stock watch list is set for success.
There’s a number of reasons to create a watch list. First, it’s an easy way to track your portfolio. It keeps you updated on all the news and information around the stocks and funds you own.
A stock watch list is most useful for tracking those great companies you run across through research but don’t meet your price requirement yet. You can try to remember it or you can write it down.
You ever go grocery shopping without writing down what you need. It works when you’re just grabbing bread and milk. But what if its several dozen items?
Shopping for stocks without a watch list is like grocery shopping by memory. There’s a 100% chance you’ll forget something (it’s always the one item you absolutely want), you’ll buy something you don’t need, and spend too much. It may work at the grocery store but it’s a bad recipe for investing.
It’s a lot easier to remember the stocks if you’re tracking them somewhere. This way, you keep an updated list of great companies you want to own. Then, when a stock drops on some short-term bad news, you can pick it up for a steal.
You can literally write the stocks down on a notepad, build your own spreadsheet, or you can take advantage of sites that offer free watch list tools.
Free Stock Watch Lists
With a watch list, you create a personal list of “best stocks” to own when the price is right. The two sites below are both free and easy to use. You will have to register first to use the tool.
Morningstar Watch List
Morningstar is the leader in independent financial research and its free watch list shows it.The Morningstar Portfolio Manager lets you set up multiple lists for stocks, ETFs, and mutual funds. You can track your current portfolio and investments you’re still researching and waiting to own.
It allows you to track over 200 metrics for each stock or fund and lets you set up email alerts for over two dozen metrics.You can even use it to build custom fund portfolios to test different allocation mixes and performance. Best of all, you have access to Morningstar Ratings, articles, news, and market information for everything you track.
Yahoo! Watch List
Yahoo Finance offers the My Portfolios tracker that works great for watch lists. I used it for years before switching to Morningstar. It lets you create multiple watch lists and set up custom views from over 90 metrics. It even has basic email alerts for big price changes. The one standout is the notes section you can add that lets you jot down important information you come across. While it’s not as robust as the Morningstar watch list, it’s a good alternative.
Check Your Broker
I’ve used several free watch lists over the years including one from my broker – TD Ameritrade. Like othertop online broker, it offersa number of great research tools for account holders. The watch list is just one. If Morningstar and Yahoo don’t make the cut, your current broker might be all you need.
As a seasoned financial expert and investment enthusiast, my extensive experience in the field allows me to share valuable insights on tools that can significantly enhance your investment process. Having navigated the complex world of finance, I understand the importance of utilizing effective resources to make informed investment decisions.
The article emphasizes the use of three crucial tools: a good stock screener, an investment checklist, and a stock watch list. Let's delve into each concept to provide a comprehensive understanding.
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Stock Screener:
- A stock screener is a powerful tool that allows investors to filter and narrow down stocks based on specific criteria. It helps in identifying investment opportunities that align with the investor's preferences and objectives.
- Investors can screen stocks based on various factors such as market capitalization, price-to-earnings ratio, dividend yield, and other financial metrics. This aids in the efficient identification of stocks that meet the desired criteria.
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Investment Checklist:
- An investment checklist is a systematic approach to evaluating potential investments. It serves as a comprehensive list of criteria that an investor considers before making a decision.
- The checklist may include items such as financial health of the company, growth prospects, competitive positioning, management quality, and any other factors relevant to the investor's strategy.
- Utilizing an investment checklist ensures a disciplined and thorough assessment of each investment opportunity, reducing the likelihood of making impulsive or emotionally driven decisions.
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Stock Watch List:
- A stock watch list is an essential tool for tracking and monitoring potential investment opportunities that may not be immediately suitable due to pricing or other considerations.
- It helps investors keep tabs on companies of interest, allowing them to stay informed about news, developments, and changes in the market conditions related to those specific stocks.
- The analogy of grocery shopping without a list is apt – without a watch list, investors may overlook opportunities, make hasty decisions, or miss out on stocks that temporarily drop in value, presenting buying opportunities.
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Morningstar Watch List:
- Morningstar is a renowned independent financial research leader. Its free watch list tool, the Morningstar Portfolio Manager, enables users to organize multiple lists for stocks, ETFs, and mutual funds.
- Users can track their current portfolio, investments in the research phase, and set up email alerts for various metrics. The tool also provides access to Morningstar Ratings, articles, news, and market information.
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Yahoo! Watch List:
- Yahoo Finance offers the My Portfolios tracker, which serves as an effective watch list tool. Users can create multiple watch lists, customize views based on over 90 metrics, and receive basic email alerts for significant price changes.
- A notable feature is the notes section, allowing users to jot down important information they come across. While not as robust as Morningstar, it provides a good alternative.
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Check Your Broker:
- Many online brokers, such as TD Ameritrade, offer free watch list tools for account holders. These tools are often integrated into the broker's platform and provide additional research resources for investors.
- Investors should explore the watch list tools offered by their current broker, as they may find them sufficient for their needs, eliminating the need for third-party tools.
In conclusion, the combination of a stock screener, investment checklist, and a well-managed stock watch list equips investors with the tools needed for successful and informed decision-making in the dynamic world of investments.
