How To Use A Watch List
Stock trading watch lists are just what the name suggests, a list of stocks to keep an eye on. An investor is watching either the price or the volume action for a particular stock, or a particular group of stocks, in a list.
The Most Excellent Investor website is based on stock research for taking long positions - buying stocks and selling them. So the watch lists on this site are geared toward establishing long positions. (Note: in this context the word long does not indicate a length of time, but instead indicates the practice of buying shares of stocks first, then selling them; as opposed to shorting/selling shares first then buying to cover later.)
What Are You Watching For?
You are watching for stocks to approach some pivot point that will indicate that they are ready to make a move in price up or down. If you are looking to establish a long position - buy a stock first then sell it after the price rises - then you are watching for signs indicating the stock price is ready to make a move up. If you are looking to short a stock - sell shares you don't own at a high price then buy shares to cover your short when the stock price later drops - then you are watching for signs indicating the stock price is ready to make a move down.
Remember, Most Excellent Investor watch lists have a long bias, and are designed for investors with short-term long positions in mind (buy shares then sell the shares at a higher price).
What To Do When What You Watched For Happens?
Once a stock reaches the pivot point you anticipated then it is time to act - buy and take your position in a trade, or sell and take profits from your long position already held.
The research behind MostExcellentInvestor.com's watch lists are based on well known indicators (such as MACD - moving average convergence divergence, OBV - on balance volume, EMA - exponential moving average, and others) plus our proprietary algorithms.
Our hourly watch lists give the approximate timing of the minute you can expect a stock to make a move up. If it seems you missed a move on a particular stock it's best to let it go; no worries because there is another stock that hour that will make a move. Just check our watch list for that hour, or the next.
When Do You Get Out?
Once your anticipated price movement has taken place then you should close your position and move to the next trade that you have been watching out for.
If you entered into a long position by buying shares of a stock then when you've made the profit you anticipated then it is time to sell. For short-term trades usually a 2% - 2.5% gain is all that you can expect. But since you have the potential to do this multiple times a day the ROI is great for many small gains.
Bottom Line: Take advantage of our Free 7 Day Trial, which will usually give you 5 trading days no matter which day you sign-up. Use the first day or two to "paper trade" our watch lists - don't actually make trades but see what would have happened had you made them. You will see how valuable our watch lists are without taking any risks. If you find them valuable then start trading for real. If you don't find them valuable you can cancel your membership before 7 days and not be charged. Click here to give us a try!