How to Build a Profitable Trading Watchlist Every Day
Creating a solid trading watchlist is the foundation of every successful trader’s game plan. Whether you’re a day trader, swing trader, or momentum trader, having a set of stocks that align with your strategy can give you the confidence to tackle the markets and make money consistently.
Here’s a step-by-step guide based on my 20+ years of trading experience to help you build your watchlist and dominate the markets.
Step 1: Define Your Trading Style and Criteria
Before you even think about picking stocks, define your trading style:
- Momentum Trader: Look for stocks with news catalysts or strong price action.
- Swing Trader: Focus on stocks with big breakout patterns or long-term setups.
- Scalper: Prioritize intraday volume and tight spreads.
Set specific criteria to filter stocks. For example, I use TC2000 to find:
- Stocks over $3.
- Minimum pre-market volume of 200,000 shares.
- News catalysts like earnings, FDA approvals, or partnerships.
Step 2: Use the Right Tools
Tools like TC2000, Trade Ideas, or Finviz can streamline your stock selection. These platforms let you filter stocks based on your criteria and quickly identify potential trades.
💡 Pro Tip: Download my TC2000 layout [here] for an easy setup to spot pre-market movers and build your watchlist.
Step 3: The 3 Buckets of a Winning Watchlist
Organize your stocks into 3 buckets if you want a profitable trading watchlist.
1. News Catalyst Plays
- Stocks with big news or events driving price action.
- Example: FUBO after announcing a new partnership.
- Look for stocks breaking over key resistance levels with strong volume.
2. Big Picture Breakouts
- Stocks forming large, long-term patterns.
- Example: NVIDIA at $50 after months of consolidation.
- These stocks often lead to explosive moves and offer both day and swing trading opportunities.
3. Trending Sectors
- Stocks in sectors with strong momentum (e.g., AI, nuclear energy, quantum computing).
- Example: SMR and NNE during the nuclear energy hype.
- These stocks can be traded back and forth for weeks during a hot trend.
Step 4: Keep It Manageable
Aim for 12-15 stocks on your watchlist, balancing all three buckets. This keeps you focused and ensures you’re only trading the best opportunities.
Why a Watchlist Matters
A Profitable Trading Watchlist saves time, reduces emotional trading, and ensures you’re always ready to act when the market opens. Pair it with a solid trade plan, and you’ll be unstoppable! I do nightly watchlists frequently on youtube check them out!
Ready to Take Your Trading to the Next Level?
Join our 60-Day Trading Bootcamp to learn how to create a professional watchlist, execute high-probability trades, and master the markets.
👉 Sign Up Here
Here is the video! Enjoy
