S5 E4 : MISSION : CREATE YOUR WATCHLIST

🧠 “Don't chase stocks. Observe them like a student.”

🎯 What’s a Watchlist?

A watchlist is a list of stocks you are interested in, but not buying yet.

Think of it like your wishlist on Flipkart or Amazon.

You're saying:

"I like these stocks. Let me track them for a while, understand them, and then decide."

🧭 Why Is It Important?

Because most people invest randomly:

  1. "My friend bought it"

  2. "It’s trending"

  3. "It’s in the news"

That’s emotional investing. It’s risky.

A watchlist helps you:

  1. Study a stock slowly

  2. Understand its ups & downs

  3. Wait for the right time to enter

👣 Step-by-Step: Create Your First Watchlist

Let’s make it simple. You’ll need:

  1. A notebook OR

  2. Google Sheets/Notes app

✅ Step 1: Pick 5 Companies You Know

Think about brands you see or use often.
For example:

🏢 Companies You Know by Sector

  1. FMCG — HUL (Surf Excel, Dove), Nestlé (Maggie)

  2. Auto — Tata Motors, Maruti Suzuki

  3. Tech — Infosys, TCS

  4. Banking — HDFC Bank, SBI

  5. Retail — DMart, Titan

Write them down. These will be your watchlist starters.

✅ Step 2: Write Why You Chose Them

For each company, ask:

  1. What do they do?

  2. Do I use their product or service?

  3. Are they growing?

Example:

Company: Titan

Reason: Everyone around wears Titan or Fastrack watches. Also owns Tanishq, a big jewellery brand. Growing steadily.

✅ Step 3: Add Basic Data

Go to Screener.in and search the company name.
Note down these 5 things:

  1. Market Cap

  2. PE Ratio

  3. Return on Equity (ROE)

  4. Debt (low is good)

  5. Profit Growth %

Don’t worry if you don’t understand these terms yet — you will in later episodes.

✅ Step 4: Track Their Stock Price Weekly

Check once a week:

  1. Is it going up?

  2. Going down?

  3. Why?

This helps you connect news with movement.
You’ll learn more by watching than by guessing.

✅ Step 5: Add or Remove Based on Logic

Example:

  1. Added: ITC (saw sales growing, profits up)

  2. Removed: Vodafone Idea (too much debt, losses increasing)

A watchlist is like your team shortlist.
Not all will make it into your final portfolio — but each teaches you something.

🔁 Your Watchlist Will Evolve

At first, it may be 5 stocks.
In a few months, it may become 15.
As you learn more, you'll refine it.

Remember: A good investor is first a good observer.

🧪 Mini Mission:

  1. Create a new Google Sheet (or open your notes app)

  2. Title: “My Stock Watchlist”

  3. Add 5 companies you know and why you chose them

  4. Check their Screener data

  5. Start tracking once a week

That’s it. You’ve just taken your first real investor step 👣