Used correctly day trading alerts can enhance your trading performance. From utilising straightforward technical signals to news and general trade alerts, all could help you maintain an edge over the rest of the market. This page will look at precisely what daily trading alerts are used for and in which markets, including stocks, currency, and futures. It will then break down the best alerts for day trading and how you can use them to increase your profits.
Brokers with Alerts
What Are Day Trading Alerts?
As an intraday trader, you are presented with a number of hurdles to overcome. How do you choose between thousands of different stocks? How do you react to news announcements before the rest of the market?
This is where day trading alerts come in. Put simply, they alert you when a specific event takes place. This event could be a market development, technical indicators, or reaching a specified price target.
Armed with this information you’re able to act or react swiftly, increasing your chance of yielding an intraday profit. You may want to pay more attention to a specific stock, or it may let you know you need to enter or exit a trade.
You can get straightforward and free trading signals, that come with your trading platform, and you can get additional, complex alerts that come at a price. The complexity of your notifications will depend on your individual trading style and needs.
In general, though, you can split trading alerts into several categories.
Every second counts when you’re aiming to profit from small intraday market changes. So, if an app can make you aware of relevant news announcements as quickly as possible, you can maximise profits. The best news notifications of this sort will also come with commentary and analysis to enhance your trading decisions.
These will be based on technical analysis. You can create trading alerts based on most of the popular indicators, including:
- Moving averages
- Exponential moving averages
- Bollinger bands
- Standard deviation
- Share (CFDs)
Most providers allow you to place and create alerts with ease through charts. You can also create various conditions by combining several different indicators. So, you could have momentum trading alerts working alongside moving averages, for example.
These allow you to respond to price movements as they happen. They create instant buy and sell signals across all markets. Some providers will also allow you to choose between price level alerts and price change alerts, which will automatically reset once triggered.
These live alerts often come with risk management advice to ensure you keep losses to a minimum, in case the strategy doesn’t pay out.
If you think markets are going to respond to specific economic events, like non-farm payrolls, for example, you can set up an alert. Several platforms allow you to scroll through a tailor-made economic calendar and then tick the events you’d like to set reminders for. They’ll usually allow you to specify how you’d like to be notified, and how much notice you would like.
As technology has evolved, effective intraday trading alerts can now be found for nearly all markets. You can now find automated signals for the following markets:
- Futures (e.g. gold & wheat)
- Stocks (e.g. Amazon & Google)
- Forex (e.g. GBP/USD & EUR/USD)
- Commodity (e.g. oil & natural gas)
- Binary options (e.g. forex/interest rates)
- ETFs (Exchange-traded funds)
- CFDs (Contracts for difference)
So, whichever market you delve into, from Bats, Nasdaq, Dax, and, NYSE, you’ll be able to setup live trading alerts with ease.
Methods Of Receiving Alerts
On-Chart Trading Alerts
You can receive your alerts in a number of straightforward ways. You can register for notifications that will pop up when you’re actually in your web-based trading platform, say TradingView, for example. They will usually make a sound to inform you an event of interest has occurred.
This event could be anything from the breach of a trend line or indicator. This method is ideal for those interested in price action as opposed to static numbers. For example, if you drew a declining trend line, the alert would be triggered at a different value at 11:00 am vs 15:00 pm, purely as a result of the slope of the line. This means your alert could tell you two different things, both price and time.
You can also download apps specifically dedicated to providing you with professional trading alerts. Alternatively, you can get mobile SMS notifications. These allow you to respond to important market developments even when you’re on the move.
There is even the option of Twitter alerts. That’s right, you can keep up to date with Donald Trump at the same time as receiving crucial trading information. If that isn’t to your fancy you can set up email alerts and absorb data that way.
Technology now allows you to receive your alerts in whichever medium is most suitable for your needs. For example, an intraday trader glued to the screen all day may benefit most from alerts on their web-based platform. A trader who trades for part of the day whilst juggling other commitments may prefer alerts via SMS.
It’s about finding the system that compliments your trading style and will allow you to digest and act upon information as quickly as possible.
Why Use Alerts?
Alerts offer the savvy trader a number of invaluable benefits:
- Offline – If you’ve been watching a stock all day you don’t want to miss out on an opportunity just because you had to nip out quickly. Alerts can be sent straight to your mobile or tablet keeping you in the know, when you aren’t at your desk.
- Time – Rather than spending all day monitoring stocks and conducting complex calculations, you can program in your criteria and then receive a price alert when it’s time to strike. This affords you more time to concentrate on other important trading areas, such as risk management.
- Automation – Human traders can make mistakes, especially when the stakes are high. Some alert systems are now 100% automated, relying on highly accurate maths and removing the human error margin.
- Speed – Rather than monitoring the news manually, you can relax and let a system that’s tailored for your market do the work. This means you could get notifications for upcoming events, reminders an hour before an event happens, plus instantaneous alerts when news breaks. You can also get macroeconomic figures the moment they are released.
- Ease of use – As apps are continuously improved, you can receive alerts quicker and easier than ever before. You can get alerts by push notification on your mobile, in the platform and by email. So, whatever strategy you’re employing, from swing trading to reversals, you’ll find setting up signals straightforward.
- Detail – You now get more detailed and relevant information to your needs. You can be alerted to assets showing promising signs of range, volume, and volatility. You can also add numerous filters to block out additional noise, making trading decisions straightforward.
How To Use Trading Alerts
Whilst using alerts comes partly down to personal preference, there are also some fundamental ways you can capitalise on them.
One of the benefits of trading alerts software is that it can streamline the decision-making process by reducing market noise. This is particularly handy for beginners, who may feel overloaded by market scanners, news sites, blogs, and any other sources they’re tuned into.
Alerts allow you to simplify the market as you can program your alerts to only monitor stocks once an alert takes place. This will keep you focused on honing your strategy instead of monitoring any and all market activity.
With a bit of practice, you can eventually get to a point where you can set your trade alerts the night before and only look at the asset in the day if an alert is actually triggered.
Entering & Exiting Trades
Head into your brokerage’s platform and you can set precise price target alerts so you’re made aware when a stock breaks out, for example. It won’t make a difference how long it takes or if the stock breaks out higher or lower, you’ll automatically receive an alert when it’s time to make the trade.
Again this will free up time from excessive monitoring, affording you the opportunity to focus on preparing for future trades.
Most people only think of alerts as useful for telling you when to enter a position, but they can also be used to recognise failures. Something which most people overlook. If you don’t learn from your mistakes you’ll quickly find yourself deep in the red.
So, how do you use alerts to flag up mistakes? You set an alert for a key level, that if met makes you stop and think carefully. Some traders may think well that’s just basically a stop level. But use them correctly and you can program them to warn you when you’re approaching a stop level. Then you have the opportunity and time to react.
You can check to see if the stop level is indeed still valid, or whether it’s simply a shakedown. If it is a shakedown you can then give your stop some more wriggle room to elude the trap.
Best Trading Alerts & Software
There are numerous day trading alert services out there. Whilst which one you opt for will depend partly on your market, below some of the best have been collated.
Honest Forex Signals
If you’re looking for FX (forex) trading signal alerts then this is a fantastic choice. Although not free, coming in at $177 for a monthly subscription, you get a vast number of simple and complex signals to choose between. All are user-friendly and straightforward to set up.
They are also renowned for second to none customer support. They are readily available and answer any customer queries almost straight away. So, if you’re looking for a forex trading alerts app to bolster your trade performance, this is a sensible choice.
Trade The News
If your strategy relies on utilising news announcements then this audio package is well worth your consideration. You receive breaking news, plus 24 hour instant analysis directly to your ear on the following topics:
- Fixed income
- Interest rates
- Central banker speak
- Energy news
- Natural disasters
- Geopolitical developments
On top of the audio broadcasts, the NewsStation text platform is where you’ll find accurate and detailed analysis moments after breaking announcements. If you’re looking for a system that will ensure you’re one of the first to know, then this is a wise choice.
Real-time Stocks Tracker
If you’re looking for FTSE alerts then this is one of the best options around. This comprehensive app brings you real-time notifications on stock options, news, events, earnings, plus signal scans. If that isn’t enough you can create multiple watch lists, real-time streaming quotes, and interactive charts with over fifty technical indicators.
The only downside is it’s currently only available in the App Store for iOS devices. However, as popularity and demand grow, an Android-based version may well surface. Nonetheless, it remains one of the best systems for receiving day trading stock alerts.
Whilst those are three of the most popular choices, some other options worth considering are listed below:
- Insider trading
- Monster trading
- C squared
- FXCM trading station
Can You Profit From Trading Alert Services?
Despite the promise of riches alert service providers claim, there remain some downsides to stay aware of. Firstly, remember that however many benefits trading signals and alerts offer, they don’t replace experience and they won’t work without an effective strategy.
Secondly, you need to take into account slippage. There will always be some lag in the alert and your ability to make or exit a trade, and when you’re intraday trading, every second and tick counts.
So, there are several questions to ask before you sign up for the ‘latest and greatest’ alert system: What is the actual content of the trade alert? Will it include details such as entry price, stop loss and price target? Finally, how many other subscribers are signed up for the same pre-determined alerts? If it’s too many you may find yourself part of the trend and not ahead of it.