Your First Buy List

Once you have your first checklist done, and you’ve checked the sentiment on the stocks, it’s time to produce your first buy list.

The buy list is created by stack-ranking the final list by QAV score (highest to lowest). The process for doing this is slightly different depending on whether you are using the TK or AF version of the sheet, but the result should be exactly the same. You can review the correct way to sort your list by watching either Tony’s video or Andrew’s video walkthrough.

One thing to keep in mind is the Average Daily Trade volume.

One of the guidelines in QAV is that Tony tries to make sure that any time he buys a stock, the dollar value of his purchase is capped at 20% of the Average Daily Trade of that stock. Sometimes he will go up to 50%, but that’s usually only if he can’t find anything else to buy on that day. 

The reason for this is that you might find yourself stuck trying to get out if you have to. If there’s a rush for the exits, you don’t want to find that there aren’t any buyers. 

This usually isn’t an issue for smaller investors, but if you’re someone who is investing millions of dollars per transaction, you want to make sure you’re not buying too much of a company’s stock.

So it’s a good idea to filter out any stocks with an Average Daily Trade too low for your needs.

For example:

If you want to buy $1000 of stock per trade, you would want to make sure that the Average Daily Trade of that stock is greater than $5000.

If you’re buying $100,000 parcels, the Average Daily Trade should be >$500,000.

We recommend that once you’ve got your buy list, you share it on the Facebook group so everyone can provide feedback. Don’t be shy!