Doing exactly what it says, a watchlist is a list you watch š
But why would you have one on here and how can it benefit you?
Watchlists allow you to cut out the noise. When you are looking for the investment that will suit your investment goals, you need to be able to reduce your probables from your potentials. A watchlist allows you to concentrate on what matters.
What are the benefits of a watchlist?
Custom grouping of selected companies and exchange-traded funds you are interested in.
Side by side price comparison and price movement.
Price alerts to notify you when a price is reached above or below the current price.
A āpracticeā portfolio until you decide which stock to buy or for when you are ready to buy.
The solar scenario āļø
You recently heard on an investing podcast that āmaybeā solar stocks will boom over the next few years. Right now youāre unsure what to buy or what to look for in a successful solar stock, so need to do some research.
Creating a watchlist to compare your options is a great first step.
Pop into the Hatch browse page and find some companies that operate in that field.
Tap the heart š¤ to create or choose a watchlist to add your picks to.
Give your watchlist a catchy name āA āļøSolar choiceā
Now that you have grouped the companies you want to know more about, you can begin your deep-dives into these stocks.
Read more
Get involved š„ļø
Follow your watchlisted company's social media accounts or subscribe to their emails and newsletters, join a community chat group where investors discuss the company's actions, and read articles. Ask questions about the future of the company, and have conversations. There may be other investors thinking about investing in the same areas as you.
You might even decide to remove companies from your watchlist as you learn more about them, and whether they align with your values and your investment goals. After youāve narrowed down your selection you could have a market entry price decided on for each stock.
Deciding on the right time to buy š
Setting a price alert for each stock could help you buy at a time and price you decide is right for you.
What is a price alert?
Each investmentās row on your watchlist has a bell icon š that allows any price to be set and an alert created for your chosen stock. Clicking allows you to set a price amount that when reached or surpassed Hatch will email you an alert.
āRead how do price alerts work here
šØ Important: Different stocks have different investment metrics. It's up to you to do your own due diligence.
Tips for using a watchlist š”
Make sure you have a goal for your watchlist. Understand why you have this watchlist and what you are trying to get from it. (Look below at the examples we have for types of watchlists.)
Donāt let your watchlist go stale. Markets will move and companies will shift focus. An idle watchlist will become out of date quickly if not being revised.
An overloaded watchlist.
Select between 5 to 15 instruments, with the aim to narrow it down to a few potential investments, juggling hundreds of tickers will dilute your attention. Remove the non performers when you see your criteria not being met. When you have decided upon a potential investment why not put them into a new watchlist for when you are ready to buy it.
Examples of types of watchlists š
An Industry or Sector: Focus on sectors you understand, such as technology, healthcare, or finance. You may want to deep dive into these areas and find the stock that you want to invest in. āMicro chip companiesā
Performance Metrics: Use ratios like Price-to-Earnings (P/E), Price-to-Book (P/B), and Dividend Yield to filter stocks. āPE ratios 10-30ā
Waiting for the right price. Use price alerts on the stocks so you donāt miss the entry price for your purchase. āBuy at $50 or underā
Waiting for the right time. Youāve decided on a number of stocks to buy at either the end of the financial quarter or after a certain announcement. Hold them here until you are ready to commit. āWait for quarterly reportsā
Market Capitalisation: Grouping based on the size of companies you want to track (small, mid, or large-cap). āMarket Caps over $2billionā
Dividend Watchlist: If generating income is part of your strategy, create a list dedicated to solid, dividend-paying companies. This helps you keep an eye on potential income streams for your portfolio. āDividend Dreamā
Lower price Alert: For a stock you already own, set an alert if the price drops by a significant amount, say 20%. This isnāt an automatic signal to sell. Instead, itās a calm, pre-planned prompt to ask: "Has something fundamentally changed with the business, or is this just market noise?" "Time to Re-evaluate"
Higher price Alert: Set an alert for when a stock hits a new 52-week high. This can be a sign of strong performance and momentum. It's a great trigger to do some research and understand why the market is so positive about the company. "All time highs"