Not all stocks are purchases. But, that does not mean we should ignore them. There will be times when the stock eventually falls further but does not rank high enough to be considered a magic formula stock. Thus, it is important to keep an eye on them. There are multiple ways to create a watch list but the one I found most useful is by creating one on a site where you spend a great deal of time on. For example, I spend most of my time on Morningstar.com or Gurufocus.com and so I create a watch list on there.