Day trading alerts are very important to prevent overtrading and staring at a screen all day. This article will provide insight as to why you should set alerts while trading, what kind of alerts to set, and also examples of alerts and trading alert services. Alarms and alerts are an everyday part of living when you think about it. When you cook or bake, you set a timer. Who desires overdone food? No one.
We also have alert services throughout our homes like security alarms or forms of warning detection. If your home was on fire, you would want your smoke detector to inform you to get out. If someone breaks into your home, you would desire your security alarm to sound and warn you of the danger, automatically inform the police for assistance, or detour the intruder from proceeding further into the home.
Every morning, you probably get up to an alarm buzzing as well. Whether you’re getting up to go to work, start your day at the gym, or manage the household and kids, the alert wakes you and reminds you that it is time to roll out of bed and get your day started!
You get the picture. We set alerts for all kinds of reasons and tasks. Even an alarm buzzes when your laundry is done. So listen to it and fold your clothes instead of letting them sit and wrinkle, right?
All reminders, notices, and alerts. They seem very normal and useful.
This can and should also apply to a day trader’s daily routine. Setting trading alerts can be beneficial in many ways.
This article is meant to provide insight as to why you should set day trading alerts while trading, what kind of alerts to set, and also examples of alerts and trading alert services.
Why Set Day Trading Alerts
Alerts inform us or remind us of important circumstances. They can be a tool to keep us on task and organized.
Trade alerts are no exception. Not only do they help us stay organized, but day trading alerts also help traders keep disciplined mindsets and support productivity. They can help us be more methodical and efficient, which can lead to being consistently profitable and avoid possibly losing trades.
If you set alerts and walk away from your computer, you will learn to better trade your criteria and necessary conditions. This can prevent traders from hunting for trade setups and executing a trade position based on feelings or minute-by-minute circumstances.
No trader benefits from trading with FOMO, fear of missing out. Whether you intraday trade, swing trade, or do long-term investments, relying on trading alerts will keep you from staring at charts, worrying about the unpredictable financial markets, and encourage you to adhere to your personal trading strategies. Alerts will also inform you of trading opportunities. So, no FOMO for you!
Setting alerts can also help you be more productive. By utilizing your alerts, you can still do other meaningful tasks, complete other work, or even plan some fun while still making yourself available for all trading hours of the day.
So get that gym time in, read that book, clean the house, practice those drums, whatever you need or love to do can be done while trading. Let the alert call you back to your workspace when your trade conditions are ideal. Use your time wisely.
Examples of Alerts to Set
Professional day traders set alerts to support their trading strategies and help them maintain consistency in process and profits every trading day.
What kind of alerts should you set?
Here are three top suggestions to keep you on task while keeping your schedule flexible.
1) Time of Day Trading Alerts/News Alerts
Time of day trading alerts or news alerts a trader would typically set would be according to their personal trade ideas, trading style, and asset they are trading.
Here are some examples:
If you only prefer to trade one hour after the stock market opens to allow the market to develop a price envelope, set an alert to remind you to get to work an hour after the market opens.
If you are an options trader and love the last hour of the trading day for its volume and price action movement, known as power hour, set an alarm to inform you that opportunity is knocking, and it’s time to check the charts!
Setting timeframe alerts can be beneficial, especially if you are working in a different time zone than the market.
If an FOMC announcement is scheduled or important news is on the economic calendar, setting economic alerts to inform you of the day and time would be advantageous. This strategy would allow you to be reminded of the circumstance, so you can avoid any type of stagnant market atmosphere or volatility before or during an economic announcement.
Setting alerts to notify you of important market developments in the news or to trade during a set time period would allow you to be informed of possible market conditions and go about your day being productive while doing other tasks until you are called to your workspace.
2) Stock Price Alert
Setting an alert to notify you when a stock hits a certain price can be beneficial to day traders, swing traders, and long-term investors alike. Setting real time trade alerts related to price action is the most commonly used trading alert.
Stock price alerts allow traders to keep an eye on their trade positions and also take advantage of being notified of possible trade opportunities. They can be a great tool for buy or sell signals.
Most individuals that swing trade or do long-term investing do not desire to check the charts every minute of their day. Setting an alarm for when the stock price is close to a profit target zone or close to a stop-loss area would be super practical. This affords them the flexibility to go about their day yet stay informed of the market data and its price movement.
Stock price alerts also support trading strategies. If you prefer day trading and use various strategies like supply and demand or support and resistance, it is beneficial to set alarms within cents of those zones. When the price action moves close to your plotted zone, your stock price alert would notify you that a possible trade opportunity exists.
3) Technical Analysis/ Indicator Alerts
Many day traders use various forms of technical analysis or technical indicators to confirm trade entries and exits. Setting technical alerts for when a condition is met on an indicator tool would be beneficial to all traders that use them.
For example, if you are using a trend indicator such as the MACD, maybe you set an alarm for when the MACD and signal line cross. If a trader is using a technical indicator for overbought or oversold conditions, such as the RSI, maybe they would set up trading alerts to notify them when those circumstances exist.
Allowing trade alerts to notify you when market conditions are ideal will take your stock trading to the next level and provide you with the work flexibility and balanced lifestyle you desire.
Trading Alert Services
Most brokers and trading platforms, such as TastyWorks, thinkorswim, or TradingView, have free trade alerts that traders can utilize on their own accord.
Once you set a trade alarm for a price point or condition, when the alert is met, the reminder can be sent to your email and/or to your cell phone. So not only will you hear the alarm go off on your device, but you will also get a notification on other devices in case you are out of pocket.
There are also trading alert services available that do the technical analysis and stock market research for investors and advise a trader when and what to trade. These services provide swing trade alerts, day trade alerts, penny stock alerts, options trading alerts, stock picking service signals, etc.
There are many services available to traders via stock trading apps or even on social media such as Twitter alerts. Some traders find it beneficial to have live chat room access by joining a trading room. This allows them to hear what other traders may be seeing on the stock charts and inform them of possible market circumstances and opportunities.
The downfall is you are paying for access and relying on a service to send you profitable buy and sell signals they recommend. The advantage is no back testing strategies or learning how to read price action or stock charts. The service is doing all of that for you!
Be careful to do the necessary research to find out which trading alert service may be best given your trading education, goals, and capital. The trading service must be reliable and have good past performance.
Whether you invest your own money relying on your personal day trading strategy or an investment advisory service, using alerts can be time-saving!
Summary: Day Trading Alerts
By setting alerts, you are reinforcing discipline while trading. This routine can help you adhere to your day trading strategies, improve your win ratio, and also support and maintain good risk management habits.
You can also get other tasks done, improving your all-around productivity, when you rely on an alarm to call you back to your computer. By setting alerts, or using a trading alert service, you are using your time wisely!
Take your trading system to the next level by setting alerts. Use free alerts available on your trading platform and through your brokerage account, or use some form of alert services.
Trading stocks involves risk, so be sure to practice setting up day trade alerts to ensure they perform well on your devices.
Work smarter, not harder. Trade the obvious! Let trades come to you rather than trying to chase the opportunity to trade.
Resources to Check Out
Economic Calendar:Econoday
Learn More
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”
