Making a Stock Watch List

I am taking the time to help others learn the basics in evaluating stocks for investment using both fundamental and technical analysis. Both tools are equally important in making serious decisions with your hard earned CASH!

If you wish to invest in stocks, treat it like a business, NOT A HOBBY. (ex: a retail outfit can't make money if it doesn't have goods to sell; the same goes for investors, without cash, you can't invest). You need rules and you need to follow these rules or money WILL be LOST. Once proven rules have been established, they cannot be broke or you will lose money. Everyone loses money in investing but we must learn to cut losses quick and allow gains to develop. Small losses are acceptable because they teach us lessons that allow us to win big!

Start your search by looking for stocks with superior fundamentals. After fundamentals are established, look to see if this particular stock is in good company, by this I mean a strong industry group - similar stocks, historically move in the same direction (this is fact not opinion). This is not to say every stock in the industry group will move higher or lower because a sister stock is going in that direction (this is a generalization rule). After the industry group has been confirmed strong, determine if overall market is in a specific trend (up, down or sideways).

If you are long a stock, the market must be in a confirmed up-trend, if you are short a stock, confirm a down trend. Note that 75% of all stocks will follow in the direction of the overall market. Don't fight the trend, the market is always RIGHT.

Let the market and the stock dictate how long you will be in a position. Don't worry about time frames; price and volume will tell you when to exit the position as long as you follow rules.

After fundamental have been established, you must study the technical side of each individual stock, the specific industry group and the general market trends. Record if the stock is forming a proper base, if it's about to break out of a base, if it's extended or if it's pulling back to a key support line.

At this point, add any qualifying stock to your watch list or buy the stock according to the technical entry signals (remember the fundamentals have been established earlier).

Key numbers to use in fundamentals:
Earnings (current, past: quarterly, yearly and future estimates)
Sales (current, past: quarterly, yearly and future estimates)
Return on Equity (ROE)
Price/Earnings Growth (PEG)
Price/Earnings Ratio (rise over time of base)
Debt/Equity
Assets, Liabilities
Accumulation/Distribution ratio
Up/Down Volume over past several months
Number of Institutional Holders (is this increasing or decreasing recently)

Key things to use for technical analysis:
Look at the 1 year daily chart
The 1 year weekly chart
Check volume action when bases are formed
Look at Point & Figure charts for support and resistance lines
Look for new 52-week highs

About the Author

Chris Perruna

http://www.marketstockwatch.com

Chris is the founder and CEO of MarketStockWatch.com, an internet community that teaches you how to invest your money with solid rules. We don't stop at just showing you our daily and weekly screens, we teach you how to make you own screens through education. Through our philosophy, you will be able to create your own methods and styles to become successful.

In The News:

Vetri Subramaniam, UTI Mutual Fund, talks about which stock segments he favours now  Economic Times"We think rising consumption and changing patterns of consumption accompany the positive long-term expectations for economic growth and incomes in India."
Top 10 large, mid & smallcap stocks MFs bought in April; do you own any?  MoneycontrolMutual fund (MF) inflows moderated in April even though Indian stock benchmarks rewrote history. The Sensex touched a *fresh* record high of 39,487 on April 18 ...
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
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India’s second biggest fund house busy lapping up stocks that are down 45-72%  Economic TimesICICI Prudential Asset Management, the country's second-largest money manager by assets, was busy all through April lapping up beaten down stocks, when ...
Large cap index mutual funds continue to outshine actively-managed large cap schemes  Economic TimesLarge cap index funds are outperforming the actively-managed large cap mutual fund schemes in the past one-year period. Kotak NV 20 ETF is topping the ...
Hot and Cold Stocks of Mutual Funds in April 2019  MoneylifeIn April 2019, Larsen & Toubro and Hindustan Petroleum Corporation(HPCL) were the most preferred stocks of Indian mutual funds.
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
Stay away from stock tips  LivemintIf taming the stock market was easy, everyone would do it.Losing money in market is real and facing volatility is part of the deal.
MF holdings of auto stocks at record low: Motilal Oswal study  BusinessLineMutual funds' holdings of auto sector stocks stood at a record low in April, finds a study by broking house Motilal Oswal Securities. The weightage of the auto ...
Why do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
Indians won’t invest in stocks, debt till election 2019 ends  QuartzInvestors in India are waiting the election out. In April, inflows into equity mutual funds (MFs) dipped to their lowest levels since January 2017, according to data ...
Trick is to look beyond crowded bets as market due for rebalancing  Economic TimesPolarisation within the Nifty pack suggests the time is ripe to go for some rebalancing.
Investing in mutual funds? Size of fund doesn't matter  Economic TimesA bigger MF is not always a better fund. If you come across a well-performing small fund, invest in it.
As exit polls suggest thumping victory for Modi, experts pick these 10 stocks  MoneycontrolExit polls suggest continuity of a stable government at the Centre—a positive sign for long-term investors. Any dips ahead should be used as a buying ...
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How Vanguard Patented a Way to Avoid Taxes on Mutual Funds  BloombergControversial heartbeat trades help the funds avoid taxable gains.
We have already done a course correction in Aditya Birla Frontline Equity  LivemintA Balasubramanian speaks about the performance of Aditya Birla Sun Life AMC's flagship schemes, the situation in debt funds, and more.NBFC exposure was ...
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Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayBanks have traditionally been the most preferred sector for fund managers. Equity mutual funds having the highest ever holdings of Rs 2.6 lakh crore in banking ...
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Financial planners recommend new fund from Mirae Mutual Fund  Economic TimesConsistent performance of the existing equity mutual fund schemes at Mirae has prompted financial planners to suggest the Mirae Asset Focused Fund to ...
IT, pharma and telecom top sectoral picks for MFs in April  Economic TimesFund managers have been sellers in select public sector companies.
What political leaders invest in: Mutual funds, Reliance shares and even Kingfisher Airlines  Economic TimesShares of Mukesh Ambani- led Relaince can be found in the portfolios of several leaders.
Stick to largecaps, buy financials, consumption stocks on dips: Jinesh Gopani, Axis Mutual Fund  Economic TimesStick to the few stories which are growing and be careful on the portfolio, says Gopani.
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IT, bank stocks in focus as MFs raise stake in 185 companies in March quarter  Moneycontrol.comMutual funds raised stake in as many as 185 companies while reducing in 178 companies in the March quarter, according to the shareholding data declared by ...
Credit risk funds structurally still have the potential to offer excess returns over market returns: Axis MF  MoneycontrolFixed income investors have been going through uncertain times. Investors in fixed maturity plans of two mutual funds have not been paid in full on the due ...
Mirae Asset AMC launches Mirae Asset Focussed Fund  Economic TimesMirae Asset Mutual Fund,has launched its first open ended equity focused fund - Mirae Asset Focussed Fund.
Pakistan stocks cap worst week in 17 years after securing bailout from IMF  Business StandardRead more about Pakistan stocks cap worst week in 17 years after securing bailout from IMF on Business Standard. It secured its 13th IMF bailout since the late ...
Stop! Too many stocks, mutual funds are not good for you; Buying too many may not get you more  The Financial ExpressHandling the overall risk of investments is crucial, but not at the cost of not meeting your financial goals. Over-diversification can do this.
What Type of Mutual Fund Schemes Should You Invest in? Know Here  News18Equity funds are mutual funds which invest majorly in equity stocks of listed companies. They are considered to be risky but they tend to give higher returns in the ...
Liquidity Scare: NBFC stocks slide on fears of spillover  Economic TimesAny default or downgrades in NBFC space will have a cascading impact on the entire sector.
What do politicians invest in? Here's a look at the portfolios of 8  Economic TimesDo they invest in real estate, stocks or FDs? How much is their net worth? Heres a look at the investing skills of eight candidates contesting the 2019 Lok Sabha ...
Principal Mutual Fund launches small cap fund; offer to close May 6  Moneycontrol.comPrincipal Mutual Fund on April 22 launched an open-ended scheme predominantly investing in small-cap stocks, Principal Small Cap Fund, according to a press ...
Is Janus Henderson Enterprise Institutional (JAAGX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceThere are plenty of choices in the Mid Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is Janus ...
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Stock market maven reveals success secret  Telegraph IndiaGumption, gut-feel and the gonads to back your convictions when the chips are down: those are the attributes that a market professional needs to have to come ...
The Antidote to Trade Tirades, With More Income  Investorplace.comDividend stocks are a great way to add income to your portfolio, but they're not the only way. Here are some other safe plays.
3 Money Lessons I Wish I'd Learned When I Was Younger  NasdaqThere are lots of lessons that we end up wishing we'd learned earlier. For example: Taking care of our health is important, saying "yes" more often.
Equity mutual funds turn defensive, log out of stocks  Times of IndiaCoimbatore: Even as FPIs (foreign portfolio investors) continue to bet big on the Indian market, equity mutual funds (MFs) have turned defensive and have ...
Sebi to soon act decisively on the crisis in debt fund mart  Economic TimesSources told ETNow that Sebi could soon unveil *fresh* directives to reign in mutual funds acting like banks.
Is DFA Emerging Markets Core Equity I (DFCEX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceThere are plenty of choices in the Non US - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is DFA ...
Aditya Birla Sun Life Mutual Fund seeks SEBI nod for banking ETF  MoneycontrolAditya Birla Sun Life Mutual Fund has sought the Securities and Exchange Board of India's approval to launch Aditya Birla Sun Life Banking ETF, according to ...
Retail steadily increased holdings in Jet Airways even as institutions sold  LivemintAt the end of March 2019 the retail investors had increased their stake in the troubled airline to 11.42% from 4.9%.The behaviour of institutional investors has ...
Balanced fund smackdown: Old-guard mutual funds versus upstart ETFs  The Globe and MailA well-chosen balanced fund is the simplest path to investing success. Nothing else comes close because balanced funds are well-diversified portfolios you ...
Managed Risk Portfolio: Closed End Funds And Income  Seeking AlphaThis article looks at the pros and cons of closed end funds and identifies lower risk funds with higher risk-adjusted returns. Mutual Fund Observer, Morningstar.
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
IIF: Trade wars prompt flight from China stocks  Investment MagazineThe IIF says escalating US-China trade tensions was the reason behind the capital flight from the emerging markets in the recent weeks.
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comThe Indian equity market rose about 5 percent in November but what was more heartening to see was inflows into mutual funds. Investors pumped Rs 1.4 lakh ...
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
Should I increase investments in mutual funds once I have more money to invest?  Economic TimesI am a 19-year-old student. I want to invest Rs 2,500 per month in mutual funds for 7-8 years. Can I increase the investment amount with time—once I have more ...
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
5 funds that outperformed the recent surge in Nifty returns  Economic TimesFunds that bet on banks and financial services managed to outperform during this period.
Why your core equity portfolio should be in index mutual funds  Economic TimesInvestors flock to the performing fund “after” it has beaten the index. Fund selection is not an exact science, and there will be hits and misses.
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
New SIP investors feel the pain as equity fund returns disappoint  Economic TimesSip by sip: That's how the average Indian had a taste of equities in the past couple of years. But the steady road to riches, which involved monthly mutual fund ...
What India's top three mutual funds bought and sold in February  LivemintMUMBAI: Inflows into Indian equity mutual funds in February were the smallest in more than two years as savers held back investments amid market volatility ...
Mutual funds may need smart bets on smallcap stocks to beat ETF show  Economic TimesSmallcap stocks could see up to ₹1 lakh cr inflow as fund managers look for potential winners: Analysts.
These are fertile grounds for long-term stock pickers, says Samir Rachh of Reliance Mutual Fund  Economic TimesSmall cap funds are going through a rough patch after a bull run in 2017. etmutualfunds.com spoke to Samir Rachh, fund manager, Reliance Small Cap Fund, ...
When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
Debt mutual funds with Zee exposure send investors into a tizzy  Economic TimesMUMBAI: Worries about the prospects of debt mutual funds holding securities of Subhash Chandra's Essel Group entities have resurfaced after Kotak Mutual ...
Why it is a bad idea to always look for outperformers while investing in mutual funds  Economic TimesOne of the most important features that any investor, wealth adviser or anyone in the financial media looks for in an investment product is its track record in ...
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
Flows to equity mutual funds rebound as rally spurs risk appetite  Economic TimesStock funds took in about 118 billion rupees ($1.7 billion), the highest since October.
BJP’s Amit Shah has diversified stock investment portfolio; Rahul Gandhi prefers mutual funds  Economic TimesShah held shares worth Rs 17.56 cr as of March 22, while Gandhi has MFs worth Rs 5.19 cr.
The Shocking Number of Americans Without a Retirement Account  The Motley FoolAre you one of them? If so, here's how you can open a retirement account today.
Which mutual funds are good to invest Rs 25 lakh for 10 years?  Economic TimesWhich is the best way to invest Rs 25 lakh in a mutual fund. I don't need the money for the next 10 years. I am happy with 12% returns. And what are the funds I ...
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Diversify equity portfolio with international funds  Economic TimesAs a part of diversifying your equity portfolio, wealth managers believe investors should diversify geographically using mutual funds. They can do this by ...
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
Three large mutual funds opposed to L&T’s takeover of Mindtree  Economic TimesMUMBAI: Three large mutual funds holding shares of Mindtree are opposed to L&T's hostile takeover attempt of the mid-sized software company.
At least 100 MF schemes own these stocks; that should mean something, right?  Economic TimesDomestic institutional investors have become one of the key market drivers in recent years.
How your mutual funds played the balancing act during stocks crash  Economic TimesBy Bhavana Acharya The last three months has been a bumpy ride for largecap stocks. The year so far has been unkind to the midcap and smallcap set.
What India's top three MFs bought and sold in January  Economic TimesStock funds took in a net Rs 6160 crore, the least since January 2017.
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
2019 is the year of SIP, says S Naren of ICICI Prudential Mutual Fund  Economic TimesNSE Nifty 50 price-to-earnings ratio reached the highest level of 29.24 on April 2. Does it mean markets are overvalued? Should new investors enter in the ...
Quant-based mutual fund schemes are coming. Should you invest?  Economic TimesMany mutual fund advisors believe quant-based mutual funds are the future of the Indian mutual fund industry.
Is it time to invest in mid cap and small cap mutual fund schemes?  Economic TimesMany market pundits believe this is the right time to enter in small cap and mid cap segments.
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
Why stock market volatility is beneficial for mutual fund SIP investors  Economic TimesWhile investing through systematic investment plans, you make more money precisely because the markets are facing volatility.
Best mutual funds to invest in 2019  Economic TimesEveryone wants to invest in the best mutual funds. In fact, it is the sole reason why many investors keep on postponing their investments forever. Most mutual ...
Shariah-compliant investments through mutual funds  Economic TimesWithin the mutual fund industry, investors have a choice of two equity-oriented schemes and one gold scheme that are shariah compliant.
Best multi cap mutual funds to invest in 2019  Economic TimesHere's the monthly update on our recommended multi cap mutual funds. In May, there is a small change in the recommendation list. Since Mirae Asset India ...
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.

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