It can be overwhelming for a beginner to engage in trading, especially given that there are hundreds of potential markets with which to do so. From Forex to commodities, indices, stocks, and cryptocurrencies, too many options exist out there, thereby complicating one’s focus. Setting up an effective market watch list is, however, among the most crucial steps a beginner trader can ever make.
This list helps traders screen the markets they follow and trade to enable them to specialize and block out unnecessary distractions. We will go in-depth into creating an ideal market watch list for a beginner trader so you can hit the ground running from day one.
What is a Market Watch List?
First of all, it is necessary to explain what the market watch list is and why it is important, after which the details of how to set one up will follow. A watch list is, in simple terms, a small number of financial instruments that a trader always tracks, having them in constant consideration for trading. Traders do not follow all the markets available; instead, they focus their attention on a few of them so as to have better analysis and make decisions.
A watch list for the beginning trader is a tool that helps to get back some rationality into a sometimes absolutely irrational process. It is going to help you focus on your markets and avoid the temptation to trade everything. It will change as you get more experience, but throughout it all, the foundation you build in learning to create one will remain core to your long-term success.
Why Beginners Shouldn’t Trade Every Market
As a new trader, it is very tempting to trade every available market. In essence, diversification of trades in stocks, Forex pairs, commodities, and cryptocurrencies sounds like a good strategy. The result, however, is that attempts to trade too many markets almost invariably lead to information overload.
Instead, you should be more focused on mastering a few markets so you can study the behavior and patterns of that market instead of automatically being overwhelmed by keeping too many variables in your head.
The Optimal Number of Markets to Follow
That sweet spot for most traders who are beginners lies within a range of two to up to ten markets. This range is tiny enough to keep you focused but appropriately diversified to expose you to different asset classes and opportunities. Maybe mix a few Forex pairs with one commodity, say gold, one or two major stock indices, and even one or two types of cryptocurrencies.
Focus on a workable number of markets so you can:
- Better understand how each of those markets moves.
- Keep an eye out for market analysis of patterns and behaviors.
- Not chase every opportunity but instead wait for high-probability setups.
Setting Up a Watch Market List for All Beginners
With the knowledge of how important your market watch list is, and how smaller is better, let’s go over the steps to create one. In this guide, we will cover TradingView and MetaTrader — two of the most used trading platforms right now, which provide excellent facilities for building and customizing watch lists.
1. Choose Your Platforms: TradingView and MetaTrader
Before proceeding with the watch list, determine a comfortable platform for trading. Most of them will go for either the TradingView or MetaTrader for its ability in creating a custom-made watch list and chart.
- TradingView: Allows one to get started with an intuitive interface and offering a wide range of charting options; it is recommended for new traders in need of advanced functionality given in an intuitive and user-friendly way.
- MetaTrader: The most popular trading platform among Forex traders, this is where you can create your watch lists and do powerful technical analysis.
2. Diversify Your Watch List
Diversification should form the basis of compiling your watch list. That is, Forex, commodities, indices, stocks, cryptocurrencies — whichever markets you’re into, make sure it’s a selection from different categories. This helps in risk balancing and gives room for advantage in the variation presented by multiple market conditions.
Examples of a diversified watch list:
- Forex: EUR/USD, GBP/USD
- Commodities: Gold (XAU/USD), Oil (WTI)
- Indices: S&P 500 (SPX), Dow Jones (US30)
- Cryptocurrencies: Bitcoin (BTC/USD), Ethereum (ETH/USD)
The trick is not to get overexposed to one asset class, and by mixing markets, you can avoid the trap of overexposure to one single market category, hence reducing market-specific risk.
3. Identifying Your Watch List Using TradingView
TradingView is actually pretty straightforward in developing a Market Watch list. Here’s how you can do it:
- Open a free account: If you do not have a TradingView account yet, create one — it’s free.
- Watchlist Open: Located on the right-hand side of the TradingView interface, click to open the watchlist panel.
- Creating a New Watch List: Click the dropdown, then click “Create New List.” Name it something relevant — in this case, “My Watch List.”
- Add Markets: On the top-right corner, icons pop up to add markets by searching. Everything is listed — indices, Forex pairs, stocks, commodities, and cryptocurrencies. For example, to monitor gold, type in XAU/USD and click the ADD button to add it to your trading list.
- Flag Important Markets: Hover over the markets and flag them to emphasize key markets. This enables you to focus quickly on important setups during the trading day.
4. Creating Your Watch List in MetaTrader
If you prefer MetaTrader, then the method is likewise easy:
- Open Market Watch: The Market Watch window in MetaTrader is situated at the top of your screen. It carries the list of all available markets.
- Bring Favorites to the Top: Drag your favorite markets to the top. For example, set EUR/USD, GBP/USD, and gold to the top of your Market Watch.
- Customize the List: Right-click on any market to hide unnecessary ones from your watch list. This cleans the interface, helping you focus on your top markets.
- Diversify Your Watch List: As in TradingView, diversify by selecting markets from different categories — Forex pairs, commodities, indices, and maybe one or two cryptocurrencies.
5. Reboot and Refine Your Watch List on a Regular Basis
Your watch list is dynamic, not static. As your experience develops, your watch list will evolve. Update and refine your watch list from time to time, in concert with changing market conditions, your preferences, and strategies.
- Weekly Review: Once a week, usually on weekends, review the markets on your watch list. Remove those that are no longer providing good trading opportunities and add new ones according to your trading plan.
- Performance Analysis: Track how each market performs over time. Some may be too volatile for your taste, while others may perfectly fit your trading style.
6. Stay Focused and Don’t Overtrade
Perhaps the single most significant advantage to a well-curated watch list is its ability to keep you focused. One of the primary mistakes of a beginning investor is overtrading, where you chase markets without a proper strategy.
By focusing on a selected few markets, you will have time to study and understand each one before making any trades. A watch list further keeps you from being distracted by irrelevant market moves.
Conclusion
One of the most important skills for a beginner trader is to create an effective market watch list. This allows you to focus on markets that fit into your trading strategy and avoid information overload and distractions. By having a diverse range of markets — for example, Forex, indices, commodities, and cryptocurrencies — you can analyze trends with greater insight and make wiser decisions.
Over time, your watch list will evolve as your experience grows. However, the central principles remain: focus, discipline, and continuous improvement. With your market watch list in place, you’re ready to tackle the financial markets with vision and confidence.
