How to Make a Forex Watchlist

If you are a newbie Forex trader, something that you definitely want to consider doing is making a Forex watchlist. The fact of the matter is that trading Forex can be and is very profitable, but only when done the right way. If you expect to make money trading FX, you need to trade the right currency pairs, at the right times, and during the proper market conditions. If you get any one of these factors wrong, then you are in for a world of hurt.

Of course, this all seems very intimidating, and rightfully so, because when you put thousands of dollars on the line, you really do need things to go your way. Simply put, it takes a lot of work, preparation, and know how in order to be profitable in the world of currency trading. One of the most important things that you can do in order to be well prepared for the day ahead is to create a Forex watchlist.

For those of you who don’t know, a Forex watchlist, whether a daily or weekly checklist, is like a little plan. This is where you decide which Forex currency pairs are best to trade on a given day, as well as why this is the case. Your Forex watchlist is also where you keep track of past price movement, where you analyze news, and where you keep track of your plan and goals.

Now, most of you right now are probably wondering how to make a Forex watchlist and what goes into it. Well, this is exactly what we are here to help you with today. Right now, we will go over the five most important things that you need to do in order to put together a coherent daily Forex checklist.

Analyzing Last Week & Looking for Opportunities

In order to set up a proper Forex watchlist, the first thing that you should do is to look for possible trading opportunities based on the past. In other words, take a few minutes to analyze what happened in the market in the previous week.

Take a look at all of the important stuff like trends, ranges, price turnarounds, and all of those other important factors.

You can also look at monthly timeframes, although weekly timeframes tend to be more effective in this sense. Moreover, you want to look at what happened during the previous week in relation to specific currency pairings, as this will give you a decent idea of what those currencies are going to do today or this week.

 

Look at Upcoming News Developments for Your Forex Watchlist

The next thing that you need to do in order to put together a solid daily Forex watchlist is to pay attention to news developments. It is no secret that the global economy is all intertwined, with economic, political, social, and manufacturing developments all playing their role in price action.

 Here you need to look for major news developments, particularly ones set to occur in the near future, on that same day as you are trading. What you are looking for here is Three Bull News. You should really check out the economic calendar on investing.com, as this will provide you with all of the info you need in this regard.

If you see any currencies that are showing Three Bull News Releases for that given day, avoid having any trades open when the news is set for release. Moreover, don’t trade with that specific currency pairing for at least one hour after the news release. You need to wait for the news to consolidate with the market.

 

Set Up an Alert System

When it comes to your daily Forex checklist, one of the best things that you can do is to set up an alert system. You can use tradingview.com, MetaTrader, or other websites and trading platforms, most of which feature free alert systems. This way, you can set up alerts on specific currency pairings. Therefore, you will be instantly notified when the price of a pairing moves in your favor, when there is a good opportunity to trade.

 

Choose Your Pairs for Your Forex Watchlist

The next thing that you should do in order to set up a proper daily Forex checklist is to determine which currency pairings you want to trade with. Now, as a newbie, it is very strongly recommended that you stick with the five or seven major currency pairs out there.

EUR/USD, USD/CAD, GBP/USD, USD/JPY, USD/CHF, and AUD/USD tend to be the most reliable ones. Remember, it is best to place quality trades, not quantity, and therefore you should try to focus on only a few currency pairs. This is especially the case if you are a newbie, because the less you try to do, the more you can focus on what you are doing.

 

Review Your Plan & Set Realistic Trading Goals

The fifth and final component of your daily Forex checklist should be your trading plan and your strategy. Simply put, you should not be trading blindly.

You need to have a solid plan that has been tested, maybe not by you per say, but one that you know can work. Moreover, you need to set yourself realistic trading goals. There is nothing worse then setting unattainable goals and then inevitably failing to achieve them.

Making Your Forex Checklist – Conclusion

At the end of the day, something as simple as a Forex checklist like this can go a long way in making you a successful trader.

Sure, if you are a pro that has been trading for decades, you might be able to get away with a certain amount of operating on the fly, but even professionals have their plans and strategies.

If you want to make real money trading Forex, and you want to minimize your risk of loss, particularly as a newbie, then making a daily Forex checklist is essential. Of course, if you are totally new to the world of Forex, then getting a solid education is recommended, just to provide you with a good knowledge base.

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