You’ve probably wondered how you could start day trading stocks at one point or another. Well, one of the minute details when day trading stocks is to build a watchlist. Once you’ve opened your brokerage account and learned the basics of day trading stocks, it’s time to look for stocks to potentially trade. You might consider using technical analysis, catalysts or fundamentals to develop a watchlist.

How to Create a Stock watchlist

  • Use a variety of methods, such as:
    • technical analysis, catalysts, or fundamentals
    • biotech stocks and catalysts events
    • Fibonacci retracement
    • filters
    • studying charts
    • shifts in fundamentals
  • Once you find what works, stay committed
  • Use simple moving average (SMA) crossovers

Day Trading Stocks – Creating a watchlist

Once you find out what works, you need to stick to your guns. For example, one of the greatest investors, Warren Buffett, focuses on finding undervalued stocks and primarily focuses on buying those names. The trading gurus at Raging Bull do the same. Jeff Bishop focuses on options, technicals, and catalysts because he’s found these tools help him maximize profits, while Kyle Dennis focuses on biotech stocks and catalysts events.

Jason Bond loves trading penny stocks and focuses on the Fibonacci retracement, technicals and catalysts as well. That in mind, let’s take a look at how these gurus develop watchlists to find stocks to trade.

There are a multitude of ways to creating a day trading watchlist. Some traders will use filters, while some may look at charts for hours on end. Additionally, some traders will focus on looking for catalyst events or shifts in fundamentals that could potentially move a stock.

Day Trading watchlist – How to Filter for Stocks Examples

We’re going to focus on examples here because it’ll be much easier for you to learn how to create a watchlist. Thereafter, you could potentially be day trading stocks on the watchlist. Now, there are plenty of tools out there to scan for stocks to potentially put on your watchlist.

For example, Finviz has a great screener.

day trading stocks

If you hit the “Screener” tab, you’ll see something like this.

day trading stocks

How Kyle Dennis Creates a Day Trading watchlist

Now, here’s a look at how Kyle Dennis would use this tool.

day trading stocks

He would filter by industry because he’s good at trading biotech stocks. Next, he only wants to trade liquid stocks, so he would filter for stocks with an average daily volume of more than 750K. Thereafter, he would select the “Charts” tab and look at these charts to see if the stocks fit his parameters. Once he finds something he likes, he would use BioPharmCatalyst to see whether the company has an upcoming catalyst event.

day trading stocks

If the company does have an upcoming event, then he’ll put the stock on his watchlist.

Finally, he’ll have something like this, which he sends out to the trading community.

the 13-period and 30-period SMAs work well

the 13-period and 30-period SMAs

New Catalyst Swing Names (1-4 week holds) that I am watching:

Cymabay (CBAY)

Catalyst Dates: Phase 2 52-week data due in Fourth Quarter

Buy Zone: $12.00 to $13.00

Profit Zone: $14.00 or higher

Stop Zone: $11.25 or below

day trading stocks

Catalyst Swing Names (1-4 week holds) that I am watching:

Dynavax (DVAX)

Catalyst Dates: Phase 1/2 data due out at ESMO in mid October

Buy Zone: $12.00 to $13.00

Profit Zone: $14.00 or higher

Stop Zone: $11.50 or below

day trading stocks

Catabasis (CATB)

Catalyst Dates: Data update due in October

Buy Zone: $.65 to $.75

Profit Zone: $.90 or higher

Stop Zone: $.60 or below

day trading stocks

BioLineRX (BLRX)

Catalyst Dates: Phase 2 topline results due out October 19th

Buy Zone: $.87 to $.92

Profit Zone: $1.00 or higher

Stop Zone: $.85 or below

day trading stocks

Soligenix (SNGX)

Catalyst Dates: Phase 3 interim analysis due out in October 2018.

Buy Zone: $1.35 to $1.55

Profit Zone: $1.80 or higher

Stop Zone: $1.15 or below

day trading stocks

You could to the same when creating a day trading watchlist.

Kyle Dennis is giving out an eBook so you could learn how to trade biotech stocks.

How Jeff Bishop Develops a watchlist

Next, let’s see how Jeff Bishop develops a watchlist. Keep in mind, Jeff primarily trades options, but you can take some of his techniques for day trading stocks. At the end of the day, it’s about the process.

Jeff Bishop likes using simple moving average (SMA) crossovers. Now, through painstaking research and years of trading experiences, he’s found that the 13-period and 30-period SMAs work well. He looks for a crossover on the hourly chart. When he sees this, he’ll go out and buy calls or puts, depending on whether the 13-period SMA crossed above or below the 30-period SMA.

It’s a little harder to do this. So you’ll probably need a filter. But you could use consolidation patterns to potentially spot a 13/30 SMA crossover. There are filters out there, and some trading platforms may offer filters for stocks with a simple moving average crossover.

Day Trading watchlist Example

Sometimes you could do this ahead of time. For example, Jeff Bishop was watching this stock, patiently waiting for a signal to get in. ALRM looked like it found some support, and Jeff was anticipating a move higher.

day trading stocks

It looked like the 13-period SMA was about to cross above the 30-SMA on the hourly chart. This pattern was just starting to develop and if it broke above, Jeff thought the stock could run up.

ALRM is a strong stock experiencing a pullback, and he wanted to take advantage of it.

Consequently, Jeff put this on his watchlist.

Once the stock signaled to Jeff he should be buying call options, he developed a plan. Thereafter, Jeff ended up buying $40 strike price call options.

day trading stocks

Here’s a look at what happened with ALRM.

day trading stocks

The 13-hourly SMA crossed above the 30-hourly SMA, as shown above. The stock caught a bit and ran up. Those call options doubled and Jeff was sitting on some hefty profits.

day trading stocks

day trading stocks

That’s right, that small investment turned into $14K.

You could use this technique for day trading stocks as well. Maybe you want to try out moving average crossovers, you could create a filter and find stocks at support or resistance, coupled with the 13-period SMA near the 30-period SMA.

If you’re interested in potentially multiplying your money, here’s a look at how to trade options.

The Bottom Line: Start Day Trading Stocks by Creating a Stock watchlist

Once you’ve opened a brokerage account, the first step you need to take to start day trading stocks is to develop a watchlist. Trading gurus always develop watchlists so they know which day trading stocks to watch. If you don’t create a watchlist, it’ll be pretty hard when you’re day trading stocks.


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