Have you ever gone grocery shopping without a checklist? Most of the time, you have a hard time deciding which items to buy first, which results in buying things that are not your priority. It will be a waste when you purchase something, but you don’t need it then.
It is similar to investing; you must know how to create your stock watchlist. Otherwise, you will be wasting time and money buying stocks that are not good.
What Is A Watchlist?
According to Investopedia, a watchlist is a set of securities an investor monitors for potential trading or investing opportunities.
A watchlist will help you personalize your list with stocks you are interested in.
How To Create Your Stock Watchlist?
How to create a stock watchlist is not the main issue. But how to create your stock watchlist that is efficient is more important. You need to create your stock watchlist and make sure that it is an effective one.
An effective watchlist will save you time when selecting which stocks to buy and helps investors select stocks easier. Below are a few ideas on how you can create your stock watchlist.
Read: Using The CANSLIM Formula To Choose Good Stocks
Watchlist By Sectors
Different exchanges may have different numbers of sectors. A country with a bigger economy usually has more industries and thus has more sectors. It can be seen in big countries such as the United States, China, and the United Kingdom.
In Bursa Malaysia, there are 13 sectors available. An easy way to build a watchlist is by sectors. When there is any sentiment play or theme play, investors can easily open their watchlist and select stocks based on the watchlist created.
For example, an oil & gas sector watchlist may consist of companies that run businesses downstream, midstream, and upstream. A watchlist will make your life easier whenever a catalyst is related to sectors.
Besides that, some investors may be interested in a particular sector. The technology sector is the sector that has been attracting a lot of investors. This is due to the growth potential in that sector. If you are one of them, you may consider building a watchlist with technology counters.
Watchlist By Strategies
Some investors might have a watchlist based on their trading or investment strategies. In this type of watchlist, your criteria for stocks might include the following:
- Breakout 52-week high
- Breakout All-Time high
- In uptrend phase
- Forming a pattern
Read: 3 Steps To Kickstart Your Stock Market Investment Journey
Watchlist Based On Investment Objective
Traders with multiple investment objectives can create a few watchlists based on the period they will hold the stocks.
1. Short-term watchlist
List of stocks that you are monitoring closely every day.
2. Mid-term watchlist
List of stocks you monitor and wait for the right timing to enter. Once bought, these stocks will be kept in the portfolio for a few weeks or months.
3. Long-term watchlist
List of stocks you plan to buy and keep for a long time, for example, more than a year. This watchlist can be a list of stocks with strong fundamentals, consistently giving out dividends and blue-chip stocks.
Read: Investing VS Trading, Which One Is Suitable For Me?
How To Create Your Stock Watchlist In The CGS-CIMB iTrade Platform
If you have an account with CGS-CIMB and are unsure how to create a watchlist, below are the steps to follow.
- Click on Watchlist. Next, click Create Watchlist.
- Enter your watchlist name in the box provided. You can set the watchlist according to sectors or businesses.
- Click on View Watchlist to view the watchlists that you have created.
- Type the stock that you wish to put in your watchlist.
- Right-click on the stock name and click on Add to Watchlist.
- Click on the downward arrow and select your watchlist. The stock can be viewed in the watchlist that you select, making it easier for you to search in the future.
- You can always rename your watchlist and delete your watchlist.
In conclusion, it is a smart action if you have more than one watchlist. If you already have a trading account, create your stock watchlists to save time. If you are busy with work, that is not an excuse, as you can build your watchlist even after working hours when you are chilling and have some free time.
Read: Guide To Apply For IPO In Malaysia (Via Maybank2u And CIMB Clicks)
