The most effective way to make a watchlist for stocks is through online resources such as Bloomberg or MarketSmith. A watchlist is essential for any investor because the stock, futures and derivatives markets constantly reinvent themselves.
The first rule for using a market watchlist is to keep the list short and succinct, states MarketSmith. The site recommends that investors set a maximum cap for themselves, and any time the investor intends to add a new stock, he must delete an unused one. Additionally, it is essential to keep the watchlist fresh. This means that stocks which no longer meet an investor's criteria or which are not close to desired buying points should be deleted.
When viewing a market watchlist, it helps to apply different filters to gain a variety of perspectives, states MarketSmith. Instead of viewing the list in alphabetical order, users can apply a filter for a volume percent change. This method shows the stocks that are currently experiencing large volumes.
In addition to creating unique watchlists, it is possible to use pre-made screens, known as reports. There are reports based on existing EPS, traded volume, bullish stocks, bearish stocks and a wide variety of other filters, according to MarketSmith. Users can analyze these reports, then add interesting stocks to the relevant watchlist.