How to Create a Daily Forex Watchlist
If you are an aspiring Forex trader, one of the hardest things to do is to know where to start. Now, this is true in many senses. What we are talking about here today is that finding the right Forex pairs and setups each and every single day is hard to do. Sure, there are plenty of great strategies for beginners and newbies alike. However, if you plan on being successful in the world of Forex, you need to make a daily Forex watchlist.
The fact of the matter is that many newbies fail at trading because they do not make daily Forex watchlists. Now, professionals and seasoned traders may not have to do this. However, as a newbie, keeping organized and being prepared for each day of trading is essential, and this is where daily Forex watchlists come into play.
They allow you to analyze and judge the market on a daily basis. This way, using a Forex watchlist, at the beginning of each day or trading session, you can easily determine what the best FX pairings for the day are. Today, we are here to show you exactly how to make a daily Forex watchlist and what factors go into creating it. This way, you will be totally prepared to make money with some great Forex trades before the day’s trading has even begun.
Look for Possible Opportunities for Your Forex Watchlist
When you are making a daily Forex watchlist for the pairs that you might trade with on that given day, the first thing that you should do is to look for possible opportunities. A lot of looking for possible opportunities today has to do with what happened yesterday, and last week.
What you want to do here is to look at longer timeframes, such as weekly or even monthly timeframes, and you want to look at last week’s price activity in relation to specific currency pairings. You want to look at the ranges, trends, turnarounds, and much more.
There are some Forex pairs that you should focus on, and these include the major currency pairs such as EUR/USD, USD/CAD, USD/JPY, GBP/USD, and others. There are seven major currency pairs that you should focus on when creating your daily Forex watchlist.
Look at Possible News Events
The economy has many factors that determine its direction, and this is true for all market subcategories. In order to create a good daily Forex watchlist, one thing that you should be doing is looking for major news events.
What you should do here is to go to investing.com and take a look at the economic calendar. What you are looking for here is Three Bull News. Currencies that display Three Bull News are not safe to trade with until well after that particular news release has passed.
For example, if the EUR shows a Three Bull News Release for 4 PM, avoid trading with that particular currency for about 30 minutes prior and 30 minutes after the news release. Now, pro traders might be able to get away with cutting this timing much closer to the release. However, as a newbie making a daily Forex watchlist, we would not recommend doing so.
Set Up Alerts for Your Forex Watchlist
In order to create a good daily Forex watchlist, a really good idea to do is to set up alerts. You can go to tradingview.com and use their free alert system. This way, you can set up alerts on specific currency pairs, and then when the price reaches a certain level, you will be notified of it.
This way, you don’t even have to watch the currency pairs, because the alerts do the work for you. Setting up alerts for your daily Forex watchlist does take a bit of work and know-how, particularly in relation to where to set the alerts up. However, this is something that you should get used to doing.
Make a List of Pairs
When it comes to creating a daily Forex watchlist, you can take things one step further and create a pseudo weekly watchlist. One of the most important things that you can do is to decide early on as to which Forex pairs you want to trade with for the coming week. This way, you can focus on only a few pairings, you can analyze them, set up alerts, and more.
If you don’t decide early on which Forex pairs you want to trade with, you will end up confused and disorganized because you are trying to focus on too many pairs at once. There is no point in focusing on 20 Forex pairs if there are only four good pairs to trade with at a given time.
Review Your Trading Plan & Set a Realistic Goal
The other thing that you want to do in order to round off your daily Forex checklist is to review your own trading plan. Of course, if you are going to trade Forex, you need to have a good plan, one that is solid and tested.
If you have a good plan, one that you feel confident in, it makes things a lot easier. Moreover, you also need to set realistic trading and profit goals. If you are trading with a small account, this is especially the case. Simply put, you cannot expect to become wealthy from a few trades. Keep things realistic.
The Daily Forex Watchlist – Final Thoughts
As you can see, making a daily Forex watchlist before you begin trading can save you a whole lot of trouble. It comes with many benefits, and course, the biggest one is that when you begin your trading session for the day, the majority of research and analysis has already been done.
Yeah, this is best for newbies to do, but it can also help professionals. Remember, a big part of being a successful Forex trader is to be prepared, to be organized, and to have a solid plan.
If you follow the steps and tips on making a daily Forex watchlist as outlined above, making profits on the foreign currency market should become much easier.