A Daily Forex Watchlist for Newbies

Something that you should always consider doing before you start a trading session is to make a daily Forex watchlist. This will help you determine what areas of the Forex market to focus on and how to trade. With a coherent daily Forex watchlist, making profits via Forex trading becomes much easier.

Analyzing the Past Week & Looking for Opportunities

Something that you should always do when creating a daily Forex watchlist for your day of trading is to analyze the Forex market in regards to the past week.

Here, you should analyze the Forex market as a whole to see what happened in the past week, and if you want, you can choose to focus on some specific Forex pairs, the ones you intend to trade with (something that we will talk about in the sections further below).

At the very least, you should pay attention to the weekly timeframe to see what price ranges, trends, action, and more were all like for the previous week. Knowing what prices did for the previous week should give you a decent idea of what they may do on this particular day and in the next week.

If you really want to get a good idea of the big picture, looking at the past month may also be a good idea. Once you have done this, you may then have a better idea of which currencies and pairs are currently showing opportunities to profit.

Pay Attention to News for Your Daily Forex Watchlist

The next thing that you need to do when setting up your Daily Forex Watchlist for your next day of trading is to pay attention to fundamental news. You see, currencies just don’t change prices on their own.

Economic, political, manufacturing, and environmental news developments, plus more, all affect what national fiat currencies do. Therefore, a great idea is to visit a site called investing.com, and then go to the economic calendar on this site. This economic calendar will show you all of the most important news developments or releases scheduled for the upcoming day.

The more important the news is, the more it will affect currency values. What you really need to look out for here is Three Bull News, which is the most prominent and important news. For instance, if you see that the EUR has a Three Bull News release schedule for 11 am, then you don’t want to have any open trades at 11 am with the EUR.

Moreover, you don’t want to trade with that particular currency for at least one hour after the news release has occurred. This should give you a good idea of which currencies you will be trading with. This is an integral part of your daily Forex watchlist.

Set Up an Alert System

For your daily Forex watchlist, the next thing that you should do is to set up an alert system. An alert system consists of an alarm that goes off when the price of a certain currency pair reaches a certain level, a level that you determine through your analysis and research.

Once the price reaches a certain point where you feel that opening a trade will result in profits, the alarm goes off, and you can open a position. The reason you want to set up an alert system is so that you don’t constantly have to watch prices of various pairs. The alert tells you when it’s time to take action. To see up alerts for free, you can use MetaTrader, tradingview.com, and various other resources.

Make a List of Currency Pairs for Your Daily Forex Watchlist

For your daily Forex watchlist, one of the most important things that you can do is to actually decide which currency pairs that you want to focus on for the day. Generally speaking, you do want to focus on the major currency pairs, not on exotic ones that move in erratic directions.

Some of the best pairs to focus on include EUR/USD, USD/CHF, USD/JPY, USD/CAD, GBP/USD, and AUD/USD. These tend to be the safest and most reliable currency pairs to trade in Forex.

Now, if you are a newbie, it is best to focus on a maximum of three pairs per day. You don’t want to spread yourself too thin, so do some research and analysis to find the best opportunities with just a few pairings. Do some analysis of the previous week, choose your pairs, and then set up alerts for them.

Set Realistic Goals & Adhere to Your Plan

The fifth and final component of your daily Forex watchlist should be your plan and your goals. First off, you do want to have a concise and coherent trading plan. This means that you should know which currencies you are focusing on, which timeframes and charts you will be using, when you plan to place trades, the price points at which you plan to execute trades, and how you plan on closing them.

You should have every detail of your plan hammered out before you start. Moreover, keep in mind that it is always good to use a proven and time tested trading strategy that is shown to produce positive results.

The other aspect of your daily Forex watchlist should be your own goals. Now, we cannot tell you want you should set your goals at, but what we can say is that your goals should be realistic. People, if you are a beginner trader, don’t expect to make thousands and thousands of dollars in profits on a single day. Goals are much easier to achieve if they are reasonable.

A Daily Forex Watchlist for Success – Final Thoughts

The bottom line here is that if you focus on those five factors discussed above, you should be able to create a concise and coherent daily Forex watchlist that will result in success.

Moreover, if you are very new to Forex trading and don’t have much knowledge on the matter, getting a solid education is recommended. If you need a good Forex education, we recommend checking out the Income Mentor Box Day Trading Academy.