How to Use Alerts to Make the Most out of Your Investment Strategy
Updated: May 2
The stock investment market is undergoing massive fluctuation these days. The economic impact of Covid-19 has made the market more unpredictable than ever. You never know when certain news might shake things up for the stock investors. These are indeed unprecedented times for stock investors.
As an investor, you still want to keep working on your portfolio to make the most out of these opportunities that the market is presenting or might present for you in the future.
You need a reliable way of making sure that all your stock trading and buying/selling decisions go right, and you make the most out of your investments.
Alerts can help you do that. You can set up different stock alerts to stay on top of the changing market trends. These alerts will allow you to see what’s in trend in the stock market and how you can make the most out of it with your investment decisions.
Let’s go over some basic type of alerts that you can set up to take your investment game to the next level
4 Types of Alerts to Use for Investment Decisions
Setting up customized price alerts allows traders and investors to keep track of the price of a particular financial instrument. These alerts notify the investor when a sudden change happens for the market. For example, if the price of the asset goes up or down or it hits the support and resistance levels, the inventor gets notified about it.
Price alerts can prove to be quite crucial for making last-minute investment decisions. These alerts are specifically useful for day traders and investors who want to make some extra money with small investment opportunities.
How to Use Price Alerts?
If you are planning on buying or selling a stock or an ETF (exchange-traded fund) and you have a specific price for it in mind, you can set up alerts for that price. When the stock hits that price, you’d get notified when the price hits your target.
This approach will help minimize the time the news gets you and the time that you take to act on it.
The stock price of a company depends a lot on the quarterly earnings report released by a company. Based on the news in the earnings report, prices of the stocks for that company go up or down. You can set up triggers based on that news and you will get notified when the price of stock changes based on the news in the earnings report.
Percentage Change Alerts
Percentage alerts are quite similar to price alerts in the way that they work. These alerts notify you when the price of a stock or a security change is based on the percentage that you specify using these alerts.
You set up your target percentage and if the percentage of the financial instrument goes down or up the specified value, you’d get notified about it. This is a handy alert for serious investors who are looking to enter the big league.
How to Use Percentage Change Alerts?
Percentage Alerts are useful for people who are waiting for the right time and want to closely observe the changing trends for a particular instrument in the market.
If you are observing a stock and its value moves considerably as compared with the value that it closed on the previous day (in percentage), then investing in that stock has a huge potential of giving considerable returns. These alerts are useful for identifying repetitive patterns for the price of a stock based on certain events.
Exponential Moving Average
Exponential Moving Average or EMA is an analytical approach that can help identify the current performance of a stock based on the latest data. An EMA is calculated by taking the average of the closing price of a stock over a specific period and the latest data gathered is given more weight in the analysis.
How to Use Exponential Moving Average Alerts?
Setting alerts for EMA can prove to be quite useful when you want to make sure that you get the most out of your investment decisions. For example, when a financial instrument crosses above or below its calculated exponential moving average, this gives you the buying or selling insights about the stock.
The idea behind these alerts is to help you with your long-term stock trading decisions. Since the information that you get from these alerts is based on the latest moving trends, you can rely on that information with greater confidence.
52-week High/low Alerts
52-week high/low alerts are quite straightforward. These alerts notify you when the price of a stock goes higher than its value in the last 52 weeks. This massive spike in price can be an indicator of the fact that the price will keep following the same trend for the future as well.
The increase in price as compared with the price of a financial instrument in the last 52 weeks gives massive insights into the future performance of the instrument.
How to Use 52-week High/Low Alerts?
The 52-week High-Low alerts can work in both ways. These alerts will notify you when the price of an investment goes up or down its value in the last 52 weeks. Based on these insights, you can create an effective investment strategy for the future.
Whether you want to buy or sell a financial instrument, the 52-week high/low alerts can give you massive insights about that.
By setting up alerts for things like stock prices and your account, you can keep track of your finances as well as the current stock market conditions. Subscribing to an alerts service is your best bet at making sure that your investment decisions give you the maximum ROI.
So, instead of dabbling into the stock market with no insights about the current market trends, set up alerts for your investment tasks to accurately time your stock investments.