What are Alerts?
Trading alerts are a function that can be utilised for trading signals, news and reports that can help you to gather insights upon the market. Through this post, let’s explore what and which alerts can be used in various market and best alerts to help your trading journey!
What Kind of Alerts Are There?
1. Economic Alerts
- An event-driven trader often utilises economic alert to enter or exit their positions.
- You can use alerts on the economic calendar to remind you of specific events.
- This is one way of using alerts to trade in the market.
2. Price Alerts
- Price alerts enable you to respond to price movements.
- It can be used to place buy and sell signals across all markets.
- You can choose between price level alerts and price change alerts which automatically resets once triggered.
- These alerts can be used as a tool for risk management, ensuring you keep losses to a minimum.
3. News Alerts
- If you are a day trader who aims to earn profit from small market movement, news alerts will help catch up with new updates.
- Instant updates upon important news will help you to catch the opportunity to gain profit.
- News alerts can also be useful for those event-driven traders.
4. Technical Alerts
- the most famous indicators like moving average, MACD, RSI and more can be set as an alert.
- This allows you to place order conditions that you wanted have appeared.
- Plus, you can set an alert to remind you when a combination of indicators has met your requirement for accuracy.
What Are The Advantages of Using Alerts?
1. Saving Time
- After setting the alarm, you do not have to watch the market 24/7.
- Once the alert rings when all the criteria meet.
- This enables you to save time and concentrate on developing new strategies!
- Alerts can also be used as an automated trading signal.
- This will reduce the consumption of emotion and mistakes.
- It would enhance the profit rate by avoiding human errors.
3. Easy to Use
- Alerts are very easy to set up.
- After choosing an instrument, you can set a certain price to buy or sell base on your strategy.
- When it reaches the point, you can take your phone of pc out and place the order.
4. Speed and accuracy
- The alert rings when the criteria have met immediately.
- It is set to base on math and code behind the scene.
- Thus, it is speedy and accurate compared to a human being.
What are the ways we can use the alerts?
1. Systematically enter and exit positions.
You can set an alarm base on your strategy. It will tell you exactly when to enter or exit your positions. Since the alarm is base on math and code, it is very accurately working. This will reduce the rate of human error and enhance your profit rate in the long run.
2. Fully utilise the economic and news alerts.
If you are an event-driven trader, taking into account economic events and global news would be necessary. Using the alerts enables you to set up an alert upon specific events like unemployment or interest rate. This would prevent you from missing these events while trading.
Unless you are a full-time trader, it is tough to monitor the market and trade manually. Either it has to be a mid to long-term strategy or automated system trading to maintain the performance. But, an alert can be your alternative method to trade within the market. If you have a fully back-tested strategy and working but hard to automate, you can utilise an alert to ring when it is the right moment to enter or exit. Therefore, you can use your phone to execute orders within a minute!