Using Alerts to Your Advantage
Traders
who generally manage all or most of their own portfolio(s) are always
looking for target entry and exit points for existing and potential
positions. They need a system that lets them program their own limit
alerts on last price, bid, ask and volume and dozens of other criteria
and that notifies them the instant any of these alerts are triggered.
The system should send real-time alerts for any of the issues in
their portfolios via email or cellular phone or at their
computer desktops through audio or visual alerts. This functionality
allows them to act immediately on profit-making opportunities.
Look
for a system that lets you:
| • |
Set
alerts on bid price, ask price, % change, % change from open,
trade size, 52-week high, news alert count and volume |
| • |
Create
alerts on an individual symbol or globally on all the symbols
being tracked (The global alert function is good to have if
you need to be alerted when any of the issues in your portfolio
lose or gain more than a certain percentage [let's say, 5%]
on the day as measured from the previous day's closing price.) |
| • |
Set
up these types of alerts with a simple right click |
| • |
Associate
an alert with a specific quote window or with your overall layout
|
You
will also want to program your system to re-arm alerts so that once
an alert is triggered, it automatically resets based on your specifications.
For example, say you want to receive an alert if DELL rises two
percent, every two percent. If the stock is currently trading at
90, you will receive the first alert when the price appreciates
2%, then 4% and so on.
You
should also be able to set an alert on a Daily High or Daily Low
value and re-arm it. This will provide you with a powerful breakout
tool that is useful for momentum trading.
Remember:
You can't take advantage of the trading opportunities on any given
day unless you know they're out there.
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