Articles on: Getting Started

Getting Started with Formula Stocks

Getting Started with Formula Stocks

There are 3 primary way to use Formula Stocks

You can mirror the model portfolio. (as described below)
You can buy single stock suggestions when available (click here to go to Suggestions)
You can use the AI Score to aid you in portfolio selection (Click here to go to AI Reports)

An easy way to use Formula Stocks is by mirroring our model portfolio by following the monthly trades.

To do this you will need a stock brokerage account which allows you to buy and sell stocks on North Americas most popular exchanges: NYSE, NASDAQ & TSX.

If you don't have a brokerage account yet, or your brokerage account doesn't have support for these exchanges. Click here to see what brokers support Formula Stocks?

Once you have a brokerage account, there's only 2 steps to use Formula Stocks.

Mirror the portfolio
Follow the monthly trades

Please note: Your capital is at risk when investing in stocks. Make sure you have the requisite knowledge on investing in stocks before you continue.

The portfolio

On the portfolio page you'll see a list of stocks like this:

These are all the stocks that is currently being held in the Formula Stocks portfolio at any given time. Stocks that we have bought, but not sold yet.

When you start using Formula Stocks for the first time or if you upgraded to a different plan, you could start out by mirroring this portfolio in your own brokerage account.

There are only 2 details you need to do this. The stock symbol (also called "stock ticker") and the allocation percentage:

- The Stock symbol is usually the code you use the find the stock in your brokerage account.
- The allocation indicates how much of the portfolio is allocated to a single stock.

In the following examples, we assume the price of 1 share of WPM is $42.80
And the allocation of WPM is the same as the screenshot above: 16.73%

Example 1: If you have a portfolio of $100,000

You would buy 390 shares of WPM for about $16,730. ($16,730 / 42.80) = 390 shares in your portfolio.

Example 2: If you have a portfolio of $10,000

You would buy 39 shares of WPM for about $1,673. ($1,673 / 42.80) = 39 shares in your portfolio.

To mirror the portfolio you simply go through each company in the portfolio holdings and buy shares in your brokerage account to roughly match the allocation as close as possible.

Don't worry if your allocation size doesn't match the Formula Stocks portfolio 100%. It is almost impossible to match 1:1, and not necesarry.

Note that the portfolio holdings will also have a row called "💵 CASH". This row indicates how much of our portfolio is currently being held in CASH. This is important as our portfolio never receives any additional cash outside of selling stocks or receiving dividends. The cash reserves are strategically used to buy new stocks when great buying opportunities come around.

If you have mirrored the initial portfolio, there's nothing else you need to do until next month!

Shortly after the start of next month, the system will update the portfolio and the "Trades" page, you can follow this page to stay up to date.

The Formula Stocks portfolio is a model portfolio we publish for educational purposes. It is not investment advice, and you may want to consult with a registered investment advisor, if you are unsure if using such an approach suits you.

If at any point you have any questions on how to use the system. Please don't hesitate to click the blue "support" button in the side menu and we will be there to help.

Thank you for reading and welcome to Formula Stocks!
- The Formula Stocks team

Updated on: 20/01/2023

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