Stock Investing Checklist

A list that has evolved over the years. I refer it everytime before buying or selling any stock. Protects me from unforced errors.

Investing into stocks requires discipline and discipline needs process.

Market dynamics are such that it forces us to take decision in a hurry.

Many factors test our patience to buy or sell; Screaming media, tips from friends, quarterly results, management interviews, and pumping by operators to name a few.

We need to calm ourselves and control our greed and fear.

In my personal view, one of the best ways to do so is to have an investing checklist. A checklist that one can refer before placing the order to buy or sell a share.

Sharing below the one that I use. Check if it makes sense to you.

(I continually upgrade it based on new learnings and experiences in my own portfolio. So do keep this post link handy. I am also creating a permanent link of this on inves4 home page.)

Buy Checklist

  • Are you buying stock in a hurry without giving due thoughts?
  • Is the stock under owned  i.e., the story is still not widely known or agreed upon?
  • Are you buying it for short term (quick churn) or long term (call on business fundamentals)?
  • Is this the best available option out of your watchlist?
  • Does overall market sentiments make you comfortable to buy this stock?
  • What is one major reason that you are buying this stock?
    • only because it has significantly corrected from the top?
    • it’s already your portfolio stock and you want to build a larger position? Hope you are not overexposing yourself?
    • To ride on the growth or

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Kartik Subramaniam
Kartik Subramaniam
9 months ago

Nice read…the check list is well thought-out and extremely handy.

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