Using the Best Stocks to Buy to Create Your Stock Watch List

Module 6: Trading Options
Lesson 3: Stock Watch List

Your stock watch list is a list of stocks that you will review on a daily or weekly basis looking for potential trades. I showed you how to find the best stocks to buy in the last lesson, so creating this list should be no problem.

This is Step 2 of the seven-step trading process.

I recommend that your stock watch list consist of anywhere from 50-100 stocks. Having a watch list this large will ensure that you always have plenty of trading opportunities throughout the year.

In Step 1 of the seven-step trading process, you use a bit of fundamental analysis to determine how companies are doing internally. The results are used to create a list of good stocks to buy.

This list of stocks are all the stocks that survived the Investor's Business Daily sifting process that I talked about in the "best stocks to buy" lesson.

You did sign up for the Investor's Business Daily right?

If not, I understand. I've received e-mails from some people who are either reluctant (skeptical) or don't have the money.

I can't help the skeptics. Besides, I hate selling people on something that will benefit them! Either they have the faith or they don't.

A person convinced against their will, is still of the same opinion still.

For all those who just don't have the money or wouldn't fully know how to maximize the subscription, then just sign up for my newsletter and you'll occasionally get free stocks provided for you.

Remember, finding great stocks through fundamental analysis is the first step in the process of trading stock options. Fundamental analysis builds the foundation of a successful trading business.

If you skip or don't properly implement this first step, you might as well not trade stock options because you're already starting off on the wrong foot.

Stock options are nothing to play with. You can lose a lot of money if you don't know what you're doing!

This is why I'm trying my best to inform you of all the tools I use.

Using Stock Chart Analysis to Create
Your Stock Watch List

If you recall in the moving average analysis lesson, I explained that we would review a concept called stock chart analysis.

After you find a stock that passes your Investor's Business Daily filter, you're going to look at its stock chart (stock chart analysis).

When you look at the chart, you're essentially just seeing if you like what you see. If you like how the stock chart looks, you add it to your stock watch list.

Some questions that can aid you in your decision are

  • Can I trade this? (do you have a strategy that will work for this stock)
  • Do I like this charts personality? (is it steady or erratic)

Mainly, I look for stocks that generally stay in long term trends. I hate erratic stocks, but other traders love them. You have to do what's best for your particular personality.

After you've traded for awhile, you will see that each stock develops its own unique personality. Some stocks are slow and steady and others are very fast moving.

Please proceed to lesson 4: Stock Trend Analysis

Module 6: Trading Options

Module Lessons

  1. Online Options Trading
  2. Best Stocks to Buy
  3. Stock Watch List
  4. Stock Trend Analysis
  5. Stock Option Chain
  6. Paper Trading Options
  7. Trading Exit Strategy/Money Management

Module Instructions: According to how the site is set up, you are now in Module 6: Lesson 3 (Stock Watch List). For the most effective learning experience, read through each lesson in this module one by one, in the exact same order as they are listed in the table of contents to the left.

Return to the top of this page, "Stock Watch List"

Return to options trading "Home Page"

New! Comments

Leave a comment below and let us know what you think about this lesson.