There are a number of great tools you can use to simplify and streamline your investment process. An investor armed with a good stock screener, an investment checklist, and a stock watch list is set for success.

There’s a number of reasons to create a watch list. First, it’s an easy way to track your portfolio. It keeps you updated on all the news and information around the stocks and funds you own.

A stock watch list is most useful for tracking those great companies you run across through research but don’t meet your price requirement yet. You can try to remember it or you can write it down.

You ever go grocery shopping without writing down what you need. It works when you’re just grabbing bread and milk. But what if its several dozen items?

Shopping for stocks without a watch list is like grocery shopping by memory. Continue Reading…

Some investors focus on owning stocks outright others use a diversified approach through index funds, ETFs, or mutual funds. Both deal with the daily swings in stock prices.

Whatever your flavor, price changes have a big impact on your returns. Understanding what affects stock price changes in the short-term can lead to higher long-term returns.

Supply And Demand

The basic answer to what affects stock price is supply and demand. For every stock transaction a buyer and seller gets together and agrees on a price. When there are more sellers than buyers, the price is pushed lower. Alternatively, when there are more buyers than sellers, the price moves higher.

Still, there are limits to both sides. Supply is limited by the number of outstanding shares. Even then, that supply is limited further by the number shareholders willing to sell. And demand is bound by the price buyers are no longer willing to pay. Continue Reading…