Watch list - Potential BUY Candidates
The idea of this section is not to "pick stocks" but rather educate on how to pick Stocks with appropriate risk management, so that we can benefit from gains as well as cut short our losses.
Things to understand:
- Why did we pick a particular stock? - See if you can find some sort of pattern
- What should be the right price point to get in and WHY?
- What should be the right price point to get stopped out and WHY?
- How do we decide our target price so we have some sort of an idea as to how much profit to expect!!!
- Notes section on the right side (in the sheet) usually explains our reasoning as to why this stock is a potential BUY candidate..
As we add a particular stock to our list, we do explain in our BLOG with a screenshot to help us understand the pattern and reasoning.