Check Out My Step-by-Step Guide... for a Smooth Start to Your Trading Day
👋 Hi, I’m Will, and I’ve been trading stocks for over 24 years....
When I first started, mornings were chaotic.
I’d dive in without a plan, scanning random stocks, hoping for something to catch my eye.
👉 But as I quickly learned, “To not prepare is to prepare to fail.”
Creating a morning trading watchlist transformed my approach to trading and became one of the foundations of my trading success.
In this guide, I’ll share some of the things I know about building a structured morning trading watchlist, including tips to maximize your routine and focus on high-potential opportunities.
I’ll also introduce you to tools to help, like our 14-day free trials for Golden Penny Stock Millionaires or Next Big-Cap Alerts newsletters, and a limited-time offer to access our 30-Day Stock Market Bootcamp.
Let’s jump into building your morning trading watchlist!
So, Why Create a Morning Trading Watchlist?
A morning trading watchlist is like a roadmap, focusing your attention on stocks that fit your goals. It’s more than just a list; it’s a strategic lineup based on your trading style.
Having this watchlist prepared before the market opens allows you to act quickly and confidently.
Whether you’re new to trading or looking to improve your morning routine, this guide is your complete resource.
Step 1: Define Your Trading Goals and Style
Creating a morning watchlist starts with knowing what you’re looking for.
When I started trading, it was hard to decide on the type of trader I wanted to be.
Here’s how your goals and style influence your watchlist:
Defining Your Trading Goals
Your goals shape your strategy. Here’s what to consider:
Risk Tolerance: Are you comfortable with volatility? For day trading, I’m open to high-risk opportunities, while for swing trades, I aim for more stability.
Quick Gains or Long-Term Growth? Day traders focus on daily moves, while swing traders may hold positions longer. Your goals determine which stocks you include.
Knowing my goals lets me focus on setups that align with them. My own watchlist often includes stocks primed for short-term gains, fitting my style and daily objectives.
Choosing a Trading Style
Your trading style further refines your watchlist:
Day Trading: As a day trader, you’ll want stocks with high liquidity and volatility. Look for those with catalysts, volume, and solid technical setups.
Swing Trading: Swing traders aim for price swings over days or weeks. Focus on trending stocks with strong momentum indicators.
Long-Term Investing: Long-term investors might prioritize companies with stable growth, focusing on strong fundamentals.
Take a moment to define your goals and style.
👉 Writing them down keeps your watchlist focused on stocks that fit your criteria.
Step 2: Define Your Trading Setups and Criteria
Once you’ve nailed down your goals and style, it’s time to specify your criteria and setups.
This step is all about zeroing in on the patterns, price actions, or technical indicators that give you the highest probability of success.
Here’s a setup that works well for me:
Example Setup: Pullback in an Uptrend
One of my favorite setups is trading pullbacks in an uptrend.
Here’s what that setup looks like:
Criteria: Stock is in an uptrend, marked by higher highs and lows. A brief pullback creates a lower entry point before the stock resumes upward.
Entry Signal: Enter on confirmation of support.
Exit Strategy: Use a recent swing low as a stop loss, setting a profit target based on volatility or resistance levels.
Defining your setups like this narrows your focus. Early in my career as a trader, I was all over the place, looking at “interesting” stocks instead of specific setups.
Once I focused on setups that aligned with my goals, my trading improved.
Write Down Your Setups
To stay disciplined, write down your setups with the criteria they need to meet.
I keep a list of my favorite setups—whether it’s a bull flag, trend reversal, or moving average crossover—so I’m reminded daily of what fits my plan.
Step 3: Use Scanners, Screeners, and Trading Newsletters to Find Candidates
Now that you have your criteria, it’s time to find stocks that meet them.
This is where stock screeners, scanners, and newsletters become invaluable tools. Here’s how to use them effectively:
👉 Choosing the Right Tool
Real-Time Stock Scanners: For day traders, tools like Trade-Ideas or Benzinga Pro are game-changers. These allow you to set real-time parameters like volume, price movement, and specific chart patterns—critical for short-term trades that require quick decision-making.
Stock Screeners: For swing trades, FinViz is my go-to. It’s perfect for filtering stocks based on fundamental or technical indicators like high relative strength, positive earnings growth, or moving average crossovers.
Trading Newsletters: To save time and gain expert insights, I rely on my newsletters:
Golden Penny Stock Millionaires: Offers curated penny stock opportunities for short-term gains.
Next Big-Cap Alerts: Focuses on large-cap stocks poised for strong moves.
These newsletters provide handpicked stocks, reducing the need for extensive screening and helping me focus on high-potential setups.
Broad vs. Specific Screens
Broad Screens: These help create a manageable list of potential stocks. For example, I might filter for stocks near their 52-week highs with strong volume. This typically narrows down to around 50 stocks—perfect for building a morning watchlist.
Specific Screens: Specific screens drill down to exact setups, such as trend pullbacks with precise moving averages. This approach yields fewer stocks, but each one closely aligns with my trading criteria.
Experiment and Optimize
Play around with different screen settings to see what works best for your strategy.
Broad screens are excellent for generating initial ideas, while specific screens or newsletter picks often result in higher-quality trades.
By combining screeners, scanners, and trading newsletters, you create a robust system for consistently finding great candidates.
👉 Pro Tip: Start your trading day with the curated insights from newsletters like Golden Penny Stock Millionaires and Next Big-Cap Alerts to focus your efforts on pre-vetted opportunities!
Step 4: Reviewing and Narrowing Down Your List
After running your screen, review each stock’s chart to ensure they meet your criteria.
Use Multiple Time Frames
I check multiple time frames to get a fuller picture of each stock’s movement... and trust me... it does take work but doing it right puts you closer to the winners circle.
Daily Chart: This gives a big-picture view of the trend and key levels.
15-Minute Chart: I use the 15-minute chart for intraday trades to confirm a setup.
Looking at various time frames avoids “tunnel vision” on a single chart.
Many times, I’ve spotted a setup on a 5-minute chart, only to find that the daily trend moves in the opposite direction.
Mark Key Levels
Once I identify a stock with potential, I mark support and resistance levels, entry points, and possible stop-loss levels.
Having these levels marked on my chart helps me react faster.
👉 Pro Tip: Use your platform’s charting tools to draw support and resistance levels. These visual cues make it easy to see at a glance what’s happening with each stock.
Step 5: Finalizing Your Morning Watchlist
With your preliminary list, it’s time to do a final check.
Checking for News and Catalysts
Before adding a stock to my final list, I check for any relevant news or catalysts.
Here’s what I look for:
Earnings Announcements: Earnings reports can lead to significant moves. Check if upcoming earnings calls could impact your picks.
Press Releases: Announcements about new products, partnerships, or leadership changes can influence price movements.
Economic Data: Broader indicators like employment numbers or interest rate changes affect market sentiment and sectors.
Knowing if a catalyst is in play helps me assess if a stock has the potential for a big move or is more stable.
Step 6: Organizing Your Watchlist for Easy Monitoring
Now that your final watchlist is ready 😀, organize it to monitor each stock effectively.
Use Your Platform’s Watchlist Feature
Most platforms allow you to monitor key metrics in real-time.
Here’s one setup:
Current Price: Real-time price movements help me act fast.
Volume: High volume indicates momentum, essential for day trading.
Percentage Change: This shows how much a stock has moved since the previous close, a key indicator of volatility.
Get familiar with your platform’s watchlist features.
Use color-coded indicators to quickly see which stocks are moving and which are stagnant.
Review Right Before the Open
Before the market opens, I do a final check. This includes:
Pre-Market Activity: Some stocks start moving before the market opens. I review pre-market volume and price changes.
Setting Alerts: For stocks hitting key levels, I set alerts to avoid constantly watching every ticker.
Step 7: Stick to Your Watchlist During the Day
Once the market opens, it’s easy to get distracted.
But I’ve found that the more I stick to my watchlist, the better my trades are.
Preparing a list in advance means I’m ready for high-quality opportunities without scrambling.
Adjust Your Watchlist as Needed
While I mostly stick to my list, I stay flexible if a new opportunity arises that fits my criteria. However, staying focused on my watchlist keeps my trades strategic, avoiding emotional decisions that could derail my plan.
Tips for Maintaining Your Morning Trading Routine
Here’s how to stay on top of your watchlist and trading routine each day:
Reflect and Adjust: At the end of the day, review what worked and what didn’t. Use this feedback to improve tomorrow’s watchlist.
Set Goals and Stay Disciplined: Having specific goals and setups helps you stay disciplined, keeping you from veering off track.
😶🌫️ Creating a morning watchlist may seem like extra work, but it’s the foundation for a successful trading day. By preparing in advance, you’re setting yourself up to act quickly when the market opens.
Making Your Morning Watchlist Part of Your Routine
Building a daily watchlist has transformed the way I approach trading.
It brings structure to my mornings, keeping me focused on high-quality setups, and lets me start the day with a clear strategy.
If you’re looking to build a routine that keeps you prepared and informed, consider checking out our 14-day free trials for both the Golden Penny Stock Millionaires and Next Big-Cap Alerts newsletters, offering daily stock insights and strategies.
And, if you’re serious about growing as a trader, our 30-Day Stock Market Bootcamp is open for a limited time.
In the fast-paced world of trading, preparation is everything. Start your trading day with a structured watchlist, and you’ll see how it builds your confidence, focus, and ultimately, your trading success.
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