A watchlist isn’t just for the FBI. In finance, a watchlist can help inform investors about movements in the market and provide a grand scheme for where they want to invest. Not only is it helpful, but it makes data-driven investing more accessible.
Keep reading to learn more about watchlists, why they are valuable, and how that tool is available to you.
What is a Watchlist?
A watchlist is a visual of a specific set of assets, stocks, or sets of securities that an investor analyzes to capitalize on trading opportunities.
Like other watchlists (ex: the FBI), financial watchlists keep an eye on particular stocks when you create a stock screener. Unlike the FBI’s watchlist, which mostly looks for the negative, a financial watchlist can be positive or negative. It might analyze stocks that perform poorly or reveal positive performance.
With Equities Lab’s watchlists, you can keep an eye on the stocks you want, with just a glance at your home screen.
Here’s an example of a watchlist:
You can quickly view the stocks you are watching to see how they are performing based on their shade.
Why Watchlists are Valuable
Financial advisors might analyze a set of watchlists for various reasons. All these reasons become a staple for accurate information. Here is a list of some of these factors:
- Daily information on screeners you’ve created.
- Risk management by observing the market.
- Investments based on positive performance.
- Maintaining stocks that meet particular criteria.
Below is an image of the watchlist from the first tutorial, where you backtest for P/E and Market Cap. As you can see, various stocks are provided, with green being a positive performance, red being negative, and grey being more neutral.
From a glance, you can see which stocks are a risk, which could be worth the investment, and which to watch for a potential investment.
Equities Lab’s Watchlist
Watchlists are an invaluable tool that keeps track of your stocks easier. Here are a few features in Equities Lab that enhance your watchlist experience;
- Heat map for visual indicators.
- Multiple perspectives of the watchlist (graph, candlestick charts, daily gain/loss table, etc.).
- Daily updates so you can get the most recent information.
- Recommendation to “sell” if a stock doesn’t meet the screener’s criteria.
- Accessible exploration using other sources.
- Log notes of your findings for the future.
The below image depicts a section to place all the stocks you might’ve bought, along with a visual of the heatmap, so keep track of current stocks while looking for new investments.
Watch a Watchlist
If you ignore the opportunity to use a watchlist in your financial investment journey, you’re making it harder on yourself. A watchlist is a quick way to get informed data-driven investments with just a glance.