WATCHLIST

1 June 2016 By PDSNET

A list of shares of different listed companies which is being watched by an investor. As a private investor you should always maintain and monitor your watchlist. Whenever you read about an interesting share which might have the potential to be profitable, you should add it to your watchlist. Once a share is on your watchlist, you should look at it every day. You should collect and read its latest financial results from the company website. You should read all available press reports on the company. So your watchlist is chosen from the share market as a whole and you will choose the shares to buy and put into your portfolio from your watchlist. Depending on the time which you have available for studying the share market, you could aim to have as many as 30 shares in your watchlist - then from this you would choose between five and eight to own in your portfolio. If you intend to hold 8 shares in your portfolio out of the roughly 400 shares listed on the JSE, then it follows that you are looking for the top 2% of opportunities. So when you are considering adding a share to your watchlist you should ask yourself whether you consider it to be one of the top 2% of opportunities in the market.



Share this glossary term: