Do you use a watchlist, or trade whatever's moving?

A watchlist is a short list of instruments you know and follow daily. Without one, beginners tend to scan the whole market and trade whatever moved most recently — usually right before it reverses.

Do you use a watchlist, or trade whatever's moving? — trading sessions clock diagram
The four forex trading sessions across a 24-hour day

Share:

  • how many pairs or markets are on your watchlist
  • how you decided what belongs on it
  • what you do when nothing on your list is doing anything
Do you use a watchlist, or trade whatever's moving? — risk-reward diagram
A risk-reward ratio of 1 to 2

The discipline side overlaps with overtrading, and the pair choice side with majors, minors and exotics.

Background: Revenge trading and overtrading: how to spot them and stop

Trading to win back a loss, or trading out of boredom, are two of the fastest ways to damage an account. Learn the warning signs and the rules that interrupt them.

What is revenge trading?

Opening a trade to win back a recent loss rather than because your trading plan gives a signal, often with a bigger position than usual.

How do I stop overtrading?

Set a maximum number of trades and a daily loss limit in advance, require a written reason from your plan before each entry, and check in your journal whether the extra trades have helped or hurt your results.

Read the full guide

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