Setting and managing price target alerts through your broker's platform can help you be a far more productive trader. Whether you work a full-time job already or have made the leap over to trading, price target alerts can help you manage the hundreds of charts and trading opportunities each week.
Narrow Your Watch List Instantly
It's easy to get lost in a sea of stock charts. Believe me, I'm sure over the course of my career thus far I've looked at a couple million charts already! So anything that can help me become more productive and focus only on the charts that require my attention is work exploring.
Price target alerts help you narrow that 200+ stock chart watchlist you currently have down to a more reasonable and manageable handful. There's no use at all to scan over 200+ charts each morning/night if the stock isn't moving. You're wasting your time and your money.
Start With Stocks You Want To Trade
Before you set your alerts, you first need to narrow that unrealistic watch list. Focus only on the stocks/options you know you want to and can trade. Throw everything else out the door because it's wasting your time to look at something you won't trade.
Identify Patterns or Indicators
Now that you have a short list of "tradable stocks" go through them in details and identify the chart patterns, indicators, support/resistance levels that might lead to a trade in the future.
For example, if we are trading the stock above and find a pennant/flag pattern, you could use the chart to set price target alerts. You know that the stock will breakout eventually right? But the timing and direction and unclear right now...
Set Price Target Alerts
Go into your broker's platform and set specific price target alerts for the stock above so that you are alerted via email when the stock breaks out. In this example, we will set email alerts for both 1,225 and 1,275.
It doesn't matter how long it takes or if the stock breaks out higher or lower, the system will automatically alert you via email when it's ready to make a trade.
Sit Back And Wait For The Signals
Once you have alerts set on a couple great stocks, just sit back and wait for the market to tell you when to make a trade.
Honestly, it sounds so simple, but doing this can free up so much time for you to do other things (like work a day job) or study a new options trading strategy. The whole idea is that you are removing your emotions and letting the market tell you which way to trade.
You don't have to search and scan all night long looking for the best opportunities because they hit your email inbox each morning.