How to Build Watch Lists Using
Investors Business Daily
Presented by
Richard McKay
Charts
• To make full use of IBD, you have to get
proficient at reading charts. While not easy at
first, with time you can master this
fundamental skill.
• Investors.com has a Daily Stock Analysis Video
after every market day.
• The Market Wrap Video also covers charting.
• Investors Corner helps you with specific
concepts.
What Charts to Use
• The IBD 100 in the weekend (Monday) edition
ranks the very best stocks in the current
market. It also features commentary.
• Your Weekly Review shows the top stock in
the top industry Groups.
• Stocks in the News lists stocks with strong
fundamentals within 15% of a new high.
• Other places such as Big Cap 20.
Chart Key
Easy to Spot Stocks with Weak Sales
Develop Your Own Shorthand
Four Distinct Groups of Stocks
Each of the remaining stocks now goes into one
of the following lists
1. Owned Stocks – Always check what you own
2. Actionable – Black borders and stocks that
can be bought now
3. Set Ups – Check developing patterns for early
entries
4. Gone But Not Forgotten – look for a pullback
or a new base
Check the Fundamentals
Make sure to review the fundamentals and
remove any stocks that don’t live up to your
screening criteria.
Remember we only want the very best stocks.
Make your screens difficult to pass.
Benefits
• Keeps your watch lists current.
• Start new lists every Weekend
• Check last week’s list and add any that still look
promising
• Culls out lots of inferior stocks to save time.
• Helps you gauge the health of the market.
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Bear market
New bull market
Mid point in a bull market
Top of a bull market