I believe that any good DIY stock market investor is an active investor – money never sleeps
Robin Speziale | November 30, 2018 | SmallCapPower: I have a daily routine that helps keep me motivated to discover new stocks and stay on top of the stocks in my portfolio. My routine spans Monday – Friday (when markets are open). On weekends, I prefer to relax and take a breather from any stock research. Though I’m still observing people’s buying habits, checking for new store openings, and paying attention around me to gauge the economy and discover new ideas. Sometimes on weekends I’ll read a new investment book that’s been on my reading-list for some time. But as mentioned at the beginning of this book, I’ve already read most of the classics, and so these days it’s rare for me to add any new books to my roster.
I want to share my routine with you because a) I’ve been asked over the past couple of years exactly what I do on a daily basis, and b) I believe that any good DIY investor is an active investor – money never sleeps. Markets change. Businesses come and go. New opportunities emerge. Thus, you need to be aware of as much information as possible.
My Daily Routine:
9:30am (Markets Open):
- Load up BNNBloomberg.ca, and CNBC.com in my web and/or mobile phone browser – refresh periodically throughout the day to stay up-to-date with business and market news
- Open the Capital Compounders Club in Facebook, and follow members’ conversation (comments), and new posts throughout the day
- Open, and refresh Twitter throughout the day to see what the “fintwit” community is tweeting about – some good insights, and links to news can be found, plus you can build good comradery
10:00 – 11:00am:
- Login to my brokerage account, and scan through my portfolio (it’s been 30 minutes since markets opened), focusing on the early movers. If there’s any surprise ups / downs, I look into news, or other sources to find out what’s going on
- Check my calendar to see if any of my existing stock holdings (e.g. Constellation Software) are releasing their quarterly reports. I’ll have already pre-built a calendar based on data from Edgar (U.S.), and Sedar (Canada) websites. If it’s earnings day, I’ll visit the company’s website (investor relations page) to read the Qx press release and accompanying financial documents. I like reading press releases, because most of the financial performance from the quarterly report is summarized in bullet points, and with some management commentary. Optional: you can join companies’ quarterly conference calls, and/or go to conferencecalltranscripts.org afterwards to read the transcript from the call. Google Alerts also helps me to keep track of news on companies that is all delivered directly into my Gmail account on a daily basis, in one neat email
- Listen to new Podcast episodes in the background while working and researching throughout the day
- Visit my favourite investment blogs to see if there’s any new content or insights
11:00am – 2:00pm:
- I’ll open my Watchlist on Yahoo Finance (web or app), and monitor moves throughout the day. I’ll consider whether to move any stocks from my watchlist to buy-list. If ready to buy, I will determine position size, login to my brokerage account and place the trade. But if more research is required before stock(s) go onto my buy-list, I use Morningstar (10-year finance performance table), StockCharts (technical indicators), and company websites (investment report/overview – PDF, quarterly reports), and forums to conduct more due diligence on any company
- Text / message DIY investor friends, asking them if they’re looking at any new ideas, or researching new companies. Tip: open one or more group chats with your investor friends in Facebook Messenger or Whatsapp to stay in touch
- Don’t forget to eat a big lunch!
2:00 – 3:00pm:
- I’ll find out if there’s any new company listings (Initial Public Offerings – IPOs), by visiting the websites of the stock exchanges – e.g. TMX – Canada, and NYSE, Nasdaq – U.S., etc. I’ll consider tracking any new IPOs on my watchlist, so that further research can be conducted later using the websites above and in the resources section later on in this book
- Initiate a stock screener if it’s been a while. Use the screener on TMX (Canadian stocks) or Finviz (U.S. stocks) to filter stocks based on ROIC, Revenue Growth, EPS Growth, etc.
3:00 – 4:00pm:
- Log back into my brokerage account, and scan through my portfolio (the market will close soon), focusing on the day’s winners and losers. If there’s any surprise ups/downs, I’ll look into news, or other sources to identify the root causes (e.g. stock drop coincides with earnings miss). I’ll make any buy or sell trades as necessary. If before the market closes, my portfolio has done better than the market (e.g. S&P 500), I’m pretty happy
- Get caught up on any news on BNNBloomberg.ca, CNBC.com and Twitter (“fintwit” community)
- Open Google Now (if you use Android), and browse through tailored news for the day, which is based on past search results of companies, financial news websites, etc.
4:00pm (Markets Close):
- Check the Predefined Scans on StockCharts.com for bullish stocks, specifically these scans: New 52-Week Highs, Strong Volume Gainers, Bullish 50/200-Day Moving Average Crossovers, Bullish MACD Crossovers, and Gap Ups. If I see promising momentum (during the day, and / or over the course of days or weeks), and want to research more into the root causes, I’ll add these stocks to my watchlist
- Check Investcom Market Insights for any more data (e.g. top % gainers)
- Log-out of my brokerage account, and close-out of any websites or apps (this is to clear my mind for the day, as the daily routine of a being DIY investor can be incredibly draining)
- Review Google Alerts (daily) email – a compilation of news that Google has sourced from websites based on pre-loaded companies (e.g. Square, Shopify, Paypal, etc.), and review any key updates from Small Cap Power
- On a quarterly basis, review new 13F filings data on WhaleWisdom for any new holdings of the hedge fund managers that I am following. For example, checking on Bill Ackman’s Pershing Square to see if there’s any new positions in the fund. This can help in the idea generation process
Remember – tomorrow is a new day. Markets open again at 9:30am sharp (Monday – Friday). Don’t ever feel that you’re missing out if you don’t initiate a new trade today. FOMO – “Fear of Missing Out” – can hurt investment returns if you base a purchase on an emotional trigger. Only move stocks from your watchlist to buy-list (and into your account) after rigorous research, and due diligence. Also, don’t just sell a stock that’s gone down one day. Look into the root cause. Remember: “In the short run, the market is a voting machine but in the long run, it is a weighing machine” – Ben Graham.
Announcement: My New Paperback Book – Capital Compounders – officially released worldwide in stores and online November 4th, 2018, and Small Cap Power readers get a complimentary copy of the eBook. Go to http://CapitalCompounders.com and download your free copy today (PDF, 289 pages).
Robin R. Speziale is the National Bestselling Author of Market Masters, and lives in Toronto. His new book – Capital Compounders – released on November 4, 2018. You can learn more about Robin on http://RobinSpeziale.com, and contact him at firstname.lastname@example.org.
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