Watchlist
A watchlist is a list of assets you follow closely so you can spot opportunities without scanning the whole market.
A watchlist is a saved list of assets you follow closely. Instead of scanning the whole market, you check a short list each day for a Trade Setup and Entry Trigger. It does not place trades by itself.
- Category
- Trading Basics
- Reading time
- 3 min
- Also called
- Watch list, Market list, Favourites list
- Updated
Watchlists in plain words
IG calls a watchlist a key part of a trader's toolkit that lets you group markets of your choice in a single easy-to-find place.1
Custom watchlists let you follow single securities or groups you're interested in.2
Some platforms also keep separate lists of securities you already own, tracked automatically by account.2
How to build a watchlist
Set your criteria
Decide what kind of assets fit your strategy.
Create the list
Name a new list on your platform.1
Add symbols
Enter the name or symbol of each security you want to track.2
Choose views
Platforms offer views such as quotes, earnings and analyst ratings.2
Keep it visible
Add the list to your workspace so you see it when you log in.1
Prune often
Remove names that no longer fit.
Worked examples
Example 1 — Setup spotted
Setup caughtA hypothetical trader watches eight stocks and sees one break above 20; the trader buys and later sells at 22.
| Entry | 20 |
| Exit | 22 |
Grouping chosen markets in one place made the setup easy to spot.1
Example 2 — Overloaded list
Missed exitA hypothetical trader tracks far too many names, misses a stop level and closes at 45 instead of 48.
| Planned stop | 48 |
| Actual exit | 45 |
A watchlist is meant to track securities you are interested in, and too many names defeat the purpose.2
Example 3 — Watching only
Still watchingA hypothetical trader adds a new stock but waits for a clearer signal.
| Added | Yes |
| Trade | None yet |
Adding a symbol only starts tracking it; no trade happens until the trader acts.2
Watchlist vs portfolio
| Aspect | Watchlist | Portfolio |
|---|---|---|
| Contents | Assets you follow | Assets you own |
| Money at risk | None | Yes |
| Purpose | Find opportunities | Hold positions |
| Changes | Often | When you trade |
Where watchlists help
Daily prep
Checking a short list before the Trading Session.
Setups
Waiting for a Breakout.
Plans
Applying your Trading Plan to a few names.
Checklists
Running Pre-Trade and Post-Trade Checklists on candidates.
Advantages and disadvantages
Advantages
- Saves time scanning markets.
- Keeps focus on assets you know.
- Easy to set up on most platforms.
- Helps you wait for good setups.
Disadvantages
- Long lists cause overload.
- Can create fear of missing out.
- Needs regular pruning.
- Does not replace research.
Going deeper
Read as far as you need. Each level builds on the one before it.
Focus
Beginner
A watchlist gathers the markets you pick in one place, which makes trading quicker.1
Own vs follow
Intermediate
Schwab separates custom watchlists of securities you might be interested in from lists of securities you already own.2
Richer views
Advanced
Detailed views can add quotes, earnings, analyst ratings and valuations, turning a list into a research tool.2
Common mistakes
Adding too many names
Keep it short.
Never pruning
Remove stale ideas.
Trading everything on it
Wait for your setup.
No criteria
Define why a name belongs.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A watchlist tracks chosen assets.
- It does not place trades.
- Keep it short.
- Prune it regularly.
- Use it with a plan.
Frequently asked questions
How many assets should be on a watchlist?
Does a watchlist cost money?
Can I have several watchlists?
Further learning
- Trade Setup and Entry Trigger
What to look for.
- Trading Plan
Rules for acting.
- Pre-Trade and Post-Trade Checklists
Checking candidates.
- Trading Chart
Reading the list's charts.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- IG. How do I create a watchlist? (opens in a new tab) Checked .
- Charles Schwab. How to create a watchlist (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.