The last two lessons introduced you to basic value investing principles like using ratios to identify value stock candidates and the DCF model to estimate a stock's intrinsic value. Now, it's time to use what you've learned to create a value stock investing plan. With this plan, you'll learn to create a watchlist of stocks with value investing criteria, determine entry and exit points, and implement money management techniques.

An investing plan can help clarify the investment process. It helps guide your decision-making and reminds you of the necessary routines to execute your investing plan.

This lesson includes a sample investing plan that serves as a baseline for your own trading rules. As you learn more, you can adjust this plan and refine the rules to fit your specific goals.

Download a sample Fundamental Value investing plan.

In this lesson, we'll cover each section of the sample Fundamental Value investing plan:

1. Objective
2. Watchlist criteria
3. Entry rules
4. Money management rules
5. Exit rules
6. Routines

The objective of this sample investing plan is to invest in fundamentally strong stocks that are undervalued relative to an estimate of their intrinsic value.

Over the next few pages, we'll lay out the rest of the plan to help you do that.