Building a Stock Watch List: Step-By-Step Guide

100 tikers on your stock watch list. Larger the watch list the much better? One of them will increase 5-10% today right?

Every successful trader I know has a narrow, focused watchlist of normally just 10-20 names (in some cases less) going into the trading day.

Nope. Many traders erroneously believe having a big watch list means they will be most likely to find more winning trades. This is the reverse of what happens.

Today we will offer you a detailed guide for building a watch list:

In addition to running scans the night in the past, you need to do it pre-market, prior to the market opens at 9:30 EST. Stocks will often have news release where news that comes out throughout pre-market trading.

Trade-ideas is a strong scanning software to use. You can likewise utilize complimentary sites like https://marketchameleon.com/ or thestockmarketwatch.com to see a list of stocks gapping up and down throughout pre-market trading (you can use them for after-hours scans also). All you have to do is pick the pre-market tab on those websites and you will see most (not all) of the stocks gapping up and down throughout pre-market.

This is something brand-new traders frequently miss out on: You should be running scans twice prior to the trading day begins.

Pre-Market Scans

End of Day Scans

Much of the stocks that you trade the next trading today were “in play” the day before. This is why we constantly run nightly scans to get a complete analysis of all the stocks that made significant moves that day. The type of scans you run will depend on your trading design. An excellent standard scan to get you begun is what we call a “Liquid Gainers/Losers” scan. You dont even have to use a paid scanner to run this.

It is likewise beneficial to filter by stocks float size and relative volume. As we discussed in the other days short article, low float stocks on high relative volume are the most explosive. This will provide you a good 50-100 stocks to sort through from the trading day.

Quality, Not Quantity: Narrow Your Watch List

You only wish to be viewing top quality setups. The very best setups are apparent. Its not a premium setup if it takes you more than 10 seconds to figure if a stocks everyday chart is hot or not.

Half of the fight of becoming a successful trader is understanding what tickers and setups to prevent due to the fact that you have no edge. Limiting your watch list to 10 names will provide you a lot more focus and direction in your trading day. Your work is not done.

Stocks should be some of your go-to setups. Not some other trader you follow on Twitter. It is vital that you focus on stocks that are in your specific niche.

Browse Every Daily Chart On Your Scan

You can not cut corners with your watch list. You have to go through EVERY chart from your scans. Take a look at their day-to-day charts, and determine if there is a play worth enjoying for the following trading day. On the names that have hot day-to-day charts, pull up their intraday charts, and see how theyve been behaving just recently.

Did the stock close strong the other day? Did the stock close weak? Whats the stocks float?

Rank Your Watch List

Do not require trades if absolutely nothing on your watch list offers you a setup. There are some days (like today) where absolutely nothing on my leading watches list sets up, and I trade something else. Simply due to the fact that a stock is on your watch list does NOT mean you have to trade it.

Now that you have your watch note down to 10-20 tickers, you need to rank them. Do this at 9 am, so it is less likely you will have to alter the order due to pre-market price action. If you have restricted screen property, ranking them will tell you which ones to set up on your screens to concentrate on.

Construct a Trading Plan

Ensure you define all of these things for all the stocks on your watch list:

You can not wing it in trading. Write out all of these things prior to you take EVERY trade, and see how much your trade management enhances.

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100 tikers on your stock watch list. You can likewise utilize free websites like https://marketchameleon.com/ or thestockmarketwatch.com to see a list of stocks gapping up and down throughout pre-market trading (you can utilize them for after-hours scans also). Many of the stocks that you trade the next trading today were “in play” the day previously. If it takes you more than 10 seconds to figure if a stocks daily chart is hot or not, its not a top quality setup.

Simply because a stock is on your watch list does NOT mean you have to trade it.