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Welcome to Day 1 of the Build Your Watch List series!
My mission during this series is to introduce you to different industries and the companies in those industries that you can potentially trade or invest in so you can start building a stock watch list.
Today's tasks:
Learn what a watch list is and why it's important to have one
Decide if you are looking for stocks for trading, investing or both
Pick an accountability partner
But wait... what is a watch list, anyway?
Watch List
A watch list is a list of stocks that you watch for potential trading or investing opportunities. It's important to have a watch list because:
you limit your focus to just your list ⠀⠀⠀ ⠀
you don't have to hunt and search for a stock to trade or invest in
you start to learn how each stock moves throughout the year ⠀⠀⠀ ⠀
you start to learn how each stock moves in reaction to industry news
⠀⠀
Now, let me explain the difference between trading and investing and why I did both to replace my 9 to 5 and retire early.
Trading the stock market
Trading the stock market is when you buy and sell stock frequently over a short period of time with the intention of making a profit. This can be a few minutes to a few days or a few days to a few weeks. When trading, you should always know when you're going to sell a stock before you even buy it.
Investing in the stock market
Investing in a stock is when you buy a stock and keep it for a period of years to decades. When you invest, you need to look at it as buying ownership in a specific company. You are investing in their ability to stay competitive and profitable over a long period of time.
Why I do both
In order to create a monthly income while building a financial legacy through the stock market, you need to have a system that builds and supports itself. A system where you're trading and investing. By using a system like this, you allow one account to build the other, minimize risk and build wealth. This is how I was able to stop working full-time job!
Join the Discussion
Which will you be doing? Trading, investing or both? Tell me in the comments below or in today's discussion thread in the Stocks and Profit Facebook group.
You can also share it with me on social media:
Facebook: FB.com/TelaHolcomb
Instagram: instagram.com/TelaHolcomb
Pick an accountability partner
Or two! Click on over to the Stocks and Profit Facebook group and let us know you're looking for an accountability partner who's interested in trading, investing or both. You want to partner up with someone with your same goal in mind so you can best support each other!
One more thing.
I want to make sure everyone that needs help getting started with trading and investing gets access to this series and our community.
Here's how you can help me.
Share this series on your social media pages and invite a friend to join us on this series!
Want to keep up with the series on the go or share on social media? Download a copy of the series calendar.
See you tomorrow for Day 2!