HOW TO CREATE A DAY TRADING WATCHLIST

by Jun 18, 2023DEX/CEX0 comments

A day trading watchlist in cryptocurrency lists crypto coins or tokens you want to trade during the day based on your trading strategy, goals, and risk tolerance. A day trading watchlist in cryptocurrency can help you identify the best trading opportunities, save time and effort, and improve your trading performance. In this article, I will show you how to create, update, and use a day trading watchlist in cryptocurrency.

What is a Day Trading Watchlist in Cryptocurrency and Why Use It?

A day trading watchlist in cryptocurrency lists crypto coins or tokens you want to trade during the day based on your trading strategy, goals, and risk tolerance. Day trading watchlist in cryptocurrency can help you:

  • Focus on the most relevant and profitable crypto coins or tokens for your trading style and market conditions.
  • Filter out the noise and distractions from thousands of crypto coins or tokens in the market.
  • Prepare and plan your trades before the market opens and during the trading session.
  • Stay updated on the latest price movements, trends, news, and events of your watched crypto coins or tokens.
  • Avoid missing out on potential trading opportunities or chasing after losing trades.

A day trading watchlist in cryptocurrency is not a static or fixed list of crypto coins or tokens. It is a dynamic and flexible list that changes according to your trading criteria and market conditions. You should update your watchlist regularly to keep it fresh and relevant.

How to Create a Day Trading Watchlist in Cryptocurrency?

Creating a day trading watchlist in cryptocurrency is not a one-size-fits-all process. It depends on your preferences, trading style, strategy, goals, and risk tolerance. However, there are some general steps and tips that you can follow to create an effective and efficient day trading watchlist in cryptocurrency.

Step 1: Define your trading criteria

The first step to creating a day trading watchlist in cryptocurrency is to define your trading criteria. You use these parameters to screen and select the crypto coins or tokens that match your trading style and strategy. Some of the common trading criteria are:

Step 1: Define your trading criteria
  • Price range: The minimum and maximum price of the crypto coins or tokens you want to trade. For example, you may only trade crypto coins or tokens below $1 per unit if you are a penny crypto trader.
  • Volume: The minimum number of units traded per day or minute of the crypto coins or tokens you want to trade. For example, if you are a momentum trader, you may only trade crypto coins or tokens with high volume and liquidity.
  • Volatility: The price fluctuations of the crypto coins or tokens you want to trade. For example, if you are a breakout trader, you may only trade crypto coins or tokens with high volatility and potential for large price movements.
  • Sector: The industry or category of the crypto coins or tokens that you want to trade. For example, if you are a trend follower, you may only trade crypto coins or tokens that belong to a strong or weak sector.
  • News: The presence or absence of significant news or events that affect the crypto coins or tokens you want to trade. For example, if you are a catalyst trader, you may only trade crypto coins or tokens with positive or negative news, such as product launches, partnerships, regulations, hacks, etc.
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You can use various tools and resources to define your trading criteria, such as coin market cap websites(livecoinwatch.com)(coin360.com), coin price websites(coinmarketcap.com), coin news websites, coin screeners, coin scanners, coin filters, coin alerts, coin newsletters, coin blogs, coin podcasts, etc.

Step 2: Scan for potential crypto coins or tokens

The second step to creating a day trading watchlist in cryptocurrency is to scan for potential crypto coins or tokens that meet your trading criteria. You can use various tools and resources to scan for potential crypto coins or tokens, such as coin market cap websites(livecoinwatch.com)(coin360.com), coin price websites(coinmarketcap.com), coin news websites, coin screeners, coin scanners, coin filters, coin alerts, coin newsletters, coin blogs, coin podcasts, etc.

Step 3: Select and add crypto coins or tokens to your watchlist

 Select and add crypto coins or tokens to your watchlist

The third step to creating a day trading watchlist in cryptocurrency is to select and add crypto coins or tokens to your watchlist. You can use various tools and resources to select and add crypto coins or tokens to your watchlist, such as coin market cap websites, coin price websites, coin news websites, coin screeners, coin scanners, coin filters, coin alerts, coin newsletters, coin blogs, coin podcasts, etc.

To select and add crypto coins or tokens to your watchlist, you should:

  • Choose the crypto coins or tokens that meet your trading criteria and have the best profit and risk-reward ratio potential.
  • Avoid the crypto coins or tokens that do not meet your trading criteria or have a low potential for profit and a high risk-reward ratio.
  • Limit the number of crypto coins or tokens in your watchlist to a manageable amount you can monitor and trade effectively. A good rule of thumb is to have no more than 10 to 20 crypto coins or tokens in your watchlist at any given time.
  • Prioritize the crypto coins or tokens in your watchlist according to their importance and relevance for your trading strategy and goals.

Step 4: Review and update your watchlist

The fourth step to creating a day trading watchlist in cryptocurrency is to review and update your watchlist. You should regularly review and update your watchlist to keep it fresh and relevant. You should review and update your watchlist:

  • Before the market opens: You should review your watchlist before the market opens to prepare and plan your trades for the day. You should check the latest price movements, trends, news, and events of your watched crypto coins or tokens. You should also check the overall market sentiment and conditions. You should adjust your trading criteria and strategy accordingly. You should also add or remove crypto coins or tokens from your watchlist based on their performance and potential.
  • During the trading session: You should update your watchlist during the trading session to monitor and execute your trades. You should check the real-time price movements, trends, news, and events of your watched crypto coins or tokens. You should also check the overall market sentiment and conditions. You should adjust your trading criteria and strategy accordingly. You should also add or remove crypto coins or tokens from your watchlist based on their performance and potential.
  • After the market closes: You should review your watchlist after the market closes to evaluate and improve your trading performance. You should check the final price movements, trends, news, and events of your watched crypto coins or tokens. You should also check the overall market sentiment and conditions. You should analyze your trades and results. You should identify your strengths and weaknesses. You should learn from your mistakes and successes. You should also add or remove crypto coins or tokens from your watchlist based on their performance and potential.
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How to Use a Day Trading Watchlist in Cryptocurrency?

Once you have created your day trading watchlist in cryptocurrency, you can use it to improve your trading performance. Here are some tips and tricks to help you use your day trading watchlist in cryptocurrency:

  • Use your watchlist as a guide, not a rule: Your watchlist is a tool that helps you identify the best trading opportunities, but it is not a guarantee of success. You should always use your judgment and analysis when making trading decisions. You should also be flexible and adaptable to changing market conditions and situations.
  • Use various tools and indicators on TradingView: TradingView is a platform that provides various tools and indicators that can help you analyze and trade the crypto coins or tokens in your watchlist. TradingView can access real-time charts, data, news, alerts, etc., of your watched crypto coins or tokens. You can also use TradingView to apply various technical analysis tools and indicators, such as trend lines, support, and resistance levels, moving averages, Fibonacci retracements, etc., to identify entry and exit points for your trades.
  • Use stop-losses and take-profits: Stop-losses and take-profits are orders that can help you manage your risk and lock in your profit when trading the crypto coins or tokens in your watchlist. A stop-loss order automatically closes your position at a predetermined price level if the market moves against you. A take-profit is an order that automatically closes your position at a predetermined price level if the market moves in your favor. You should use stop-losses and take-profits to protect your capital and secure your profit.
  • Use risk-reward ratio and position sizing: Risk-reward ratio and position sizing can help you optimize your trading performance and profitability when trading the crypto coins or tokens in your watchlist. The risk-reward ratio is the ratio between a trade’s potential profit and potential loss. Position sizing is the amount of money that you invest in a trade. You should use risk-reward ratio and position sizing to balance your risk and reward, maximize your profit, and minimize your loss.
  • Use multiple time frames: Multiple time frames are different periods that you can use to analyze and trade the crypto coins or tokens in your watchlist. For example, you can use daily, hourly, 15-minute, 5-minute, etc. time frames to view the charts and data of your watched crypto coins or tokens. You should use multiple time frames to get a broader and deeper market perspective and to confirm your trading signals and opportunities.

What Are Some Common Mistakes to Avoid When Using a Day Trading Watchlist?

When using a day trading watchlist, there are several common mistakes to avoid, including:

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HOW TO CREATE A DAY TRADING WATCHLIST
  • Overloading your watchlist: Including too many coins or tokens on your watchlist can be overwhelming and make it difficult to identify the best trading opportunities. It’s important to be selective and only includes assets that meet your trading criteria.
  • Failing to update your watchlist: Markets can change quickly, and failing to update your watchlist regularly can lead to missed opportunities or trades that don’t align with your current strategy.
  • Relying solely on your watchlist: Your watchlist should be a guide, not a hard-and-fast rule. It’s important to stay flexible and adapt to changing market conditions.
  • Ignoring risk management: Day trading can be risky, and it’s important to implement risk management strategies, such as stop-losses and position sizing, to protect your capital.
  • Trading based on emotions: It’s important to have a clear trading plan and stick to it rather than making impulsive trades based on emotions or FOMO (fear of missing out).

By avoiding these common mistakes and staying disciplined in your trading approach, you can make the most of your day trading watchlist and improve your overall trading performance.

Conclusion

A day trading watchlist in cryptocurrency lists coins or tokens you plan to trade based on your strategy, goals, and risk tolerance. It helps you identify opportunities, save time, and improve performance. To create one, define your criteria, scan for potential options, select and add to your list, and review regularly. Use it as a guide, not a rule, and consider tools, stop-losses, risk-reward, position sizing, and multiple time frames. Contact us at support@tradingview.com with any questions or feedback. Happy trading!

FAQ

How to select and add crypto coins or tokens to your watchlist?

You should choose the crypto coins or tokens that meet your trading criteria and have the best profit and risk-reward ratio potential. Avoid the crypto coins or tokens that do not meet your trading criteria or have a low potential for profit and a high risk-reward ratio. You should limit the number of crypto coins or tokens in your watchlist to a manageable amount you can monitor and trade effectively. You should prioritize the crypto coins or tokens in your watchlist according to their importance and relevance for your trading strategy and goals.

How to review and update your watchlist?

Regularly review and update your watchlist to keep it fresh and relevant. You should review and update your watchlist before, during the trading session, and after the market closes. You should check the latest price movements, trends, news, and events of your watched crypto coins or tokens. Also, check the overall market sentiment and conditions. You should adjust your trading criteria and strategy accordingly. You should also add or remove crypto coins or tokens from your watchlist based on their performance and potential.

How to use your watchlist as a guide, not a rule?

Your watchlist is a tool that helps you identify the best trading opportunities, but it is not a guarantee of success. You should always use your judgment and analysis when making trading decisions. You should also be flexible and adaptable to changing market conditions and situations.

How to use various tools and indicators on TradingView?

TradingView is a platform that provides various tools and indicators to help you analyze and trade the crypto coins or tokens in your watchlist.

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