How to Build Watch Lists Using Investors Business Daily Presented by Richard McKay
Charts • To make full use of IBD, you have to get proficient at reading charts. While not easy at first, with time you can master this fundamental skill. • Investors.com has a Daily Stock Analysis Video after every market day. • The Market Wrap Video also covers charting. • Investors Corner helps you with specific concepts.
What Charts to Use • The IBD 100 in the weekend (Monday) edition ranks the very best stocks in the current market. It also features commentary. • Your Weekly Review shows the top stock in the top industry Groups. • Stocks in the News lists stocks with strong fundamentals within 15% of a new high. • Other places such as Big Cap 20.
Four Distinct Groups of Stocks Each of the remaining stocks now goes into one of the following lists • Owned Stocks – Always check what you own • Actionable – Black borders and stocks that can be bought now • Set Ups – Check developing patterns for early entries • Gone But Not Forgotten – look for a pullback or a new base
Check the Fundamentals Make sure to review the fundamentals and remove any stocks that don’t live up to your screening criteria. Remember we only want the very best stocks. Make your screens difficult to pass.
Benefits • Keeps your watch lists current. • Start new lists every Weekend • Check last week’s list and add any that still look promising • Culls out lots of inferior stocks to save time. • Helps you gauge the health of the market. • Bear market • New bull market • Mid point in a bull market • Top of a bull market