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Trade Smart: The Power of Effective Watchlists

Last week I shared 6 tips on how I minimize my screen time, using watchlists are one of the top ways I minimize my trading time. Like most things in trading the specifics boil down to a personal preference. What I do might not work for you, but in the GKT spirit I’m always an open book. Maybe you can learn from me, maybe you even have suggestions for me.

Most of my watchlists are self-created using trading view. (that's an affiliate link if you decide to subscribe I'd appreciate you using that.) There are a couple exceptions that I'll share below. This is not a sales pitch for trading view, but I really like the product, I use it daily, and I pay full price.

Separate Watchlists

You can choose to have a single watchlist with lots of companies, or you can make as many lists as you like. I divide my watchlists based on the follow factors:

  • Time Horizon and Account Type (like IRA, short term account, longer term account)

  • Company Fundamentals

  • Specific Trading Strategy

This means some of my watchlists have duplicate underlings on multiple watchlists (for instance Apple appears on more than one list). This strategy works best for me because my watchlists are shorter and I find I can stay focused on my strategy and make the best trades.

Examples of my Watchlists

In the article I discussed a 'Quick Morning Review' this is done via a watchlist. I scroll through the following list every single morning 30 mins before market opens.

Do you notice every stock on this list is purple? Trading view has built in color coded lists (below) and I encourage you to use them. I use each of these for different purposes (Purple is my daily list, blue is my possible swing trades, red is positions i need to monitor for protection, etc). Build your own system but use these!

ETF’s: This includes the following, I like to watch this to keep up with market rotations that I talked about back in the dividend blog post.

  • XLC (Communication Services Select Sector SPDR Fund)

  • XLY (Consumer Discretionary Select Sector SPDR Fund)

  • XLP (Consumer Staples Select Sector SPDR Fund)

  • XLE (Energy Select Sector SPDR Fund)

  • XLF (Financial Select Sector SPDR Fund)

  • XLV (Health Care Select Sector SPDR Fund)

  • XLI (Industrial Select Sector SPDR Fund)

  • XLB (Materials Select Sector SPDR Fund)

  • XLRE (Real Estate Select Sector SPDR Fund)

  • XLK (Technology Select Sector SPDR Fund)

  • XLU (Utilities Select Sector SPDR Fund)

Dividend Companies: Mainly Dividend aristocrats but also some of my other favorite dividend stocks as well. I wrote a complete series on how I use dividend stocks as a staple of my trading. Check out the series!

Long Term Quality Companies: There are companies I believe in long term and don’t mind holding for more than 5 years. Stocks I normally pyramid into. I have stocks like GOOGL, AAPL, COST, WMT, JNJ, SO, PEP, WM. (its highly subjective to you).

Money making companies:- This list is strictly based on fundamentals then pared down to companies I like to trade.

High Liquidity: This is my math based favorite of companies that have high liquidity. I think I got this list from Tasty Trade its hundreds of underlings.

Sideways Companies: I like to trade companies that trade sideways or are range bound, so when I see a stock not moving too much it goes on this list.

Futures: Currencies, Commodities, and Forex- again this list was from tasty trades cheat sheet, but you can find it other places as well!

In addition to the watchlists I create, I do also use watchlists within TastyTrade and the hotlist within trading view! These are lists with underlyings I didn't create, but when I don't see trades I like, these lists help me look outside the box.

Next time I’ll talk more about how I sort my watchlists, how I maintain the watchlists and how I trade based of my watchlists.

If you found this useful let me know! I love talking to people interested in trading (a quick thanks is always nice too). If you want more information you should join the GKT discord to discuss these tips in more detail and connect with like minded people who trade the stock market!

Happy Trading Good Kids!

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