Setting Up Price Alerts

Price alerts notify you when stocks reach important levels, freeing you from constant monitoring while ensuring you don't miss opportunities. [DEFINITION] Price Alert: An automated notification triggered when a stock reaches a specified price level or meets certain conditions, delivered via email, SMS, or app notification. ### Why Use Price Alerts **Free your time:** - No need to watch screens constantly - Focus on life while markets are monitored - Reduce stress and distraction **Improve execution:** - Act when predetermined conditions are met - Avoid emotion-driven watching - Enter at planned price levels [KEY] Price alerts transform reactive trading into proactive trading. You decide in advance what prices matter and why. ### Types of Alerts **Basic price alerts:** - Stock reaches specific price (above or below) - Stock crosses a price level **Percentage change alerts:** - Stock moves X% from a reference point - Daily percentage change threshold **Technical alerts:** - Price crosses moving average - RSI reaches overbought/oversold - Volume spike detected [EXAMPLE] You want to buy a stock at $45 (currently $50). Set alert: "Notify me when price falls to $45." When triggered, you evaluate and decide to buy—no need to watch daily. ### Where to Set Alerts **Broker platforms:** Most brokers offer free price alerts: - Fidelity, Schwab, TD Ameritrade: Unlimited alerts - Usually email and mobile notifications - Integrated with your trading account **TradingView:** - Visual alerts on charts - Various condition types - Free tier has limited alerts **Stock apps:** - Yahoo Finance, Webull, Robinhood - Mobile-first experience - Quick to set up [TIP] Use your broker's alerts for buy/sell decisions since you can act immediately. Use TradingView for technical analysis alerts. ### Strategic Alert Setup **Entry alerts:** - Set at your predetermined buy price - May include limit order simultaneously - Consider setting multiple levels (ladder in) **Exit alerts:** - Set at profit targets - Set at stop-loss levels - Review when triggered—alert, don't auto-trade **Watchlist alerts:** - Stocks you're interested in but not ready to buy - Alert at prices that would change your mind - Check periodically for triggered alerts ### Alert Management **Best practices:** - Review and update alerts weekly - Delete alerts for sold positions - Avoid alert fatigue from too many - Set meaningful levels, not arbitrary numbers [WARNING] Too many alerts cause "alert fatigue"—you stop paying attention. Keep alerts focused on truly important levels. ### Building Your Alert System [EXERCISE] You're watching 10 stocks. For each, identify one price level that would trigger action (buy or sell). Set those 10 alerts. |ANSWER| Example for one stock: "XYZ currently $100. My buy target is $85 (15% pullback to support). Set alert at $85." Now repeat for remaining 9. This exercise forces you to predefine important levels for your watchlist. ### Conditional Thinking Before setting an alert, answer: 1. What price level matters and why? 2. What will I do when the alert triggers? 3. Is this level based on analysis or arbitrary? 4. How often should I review this alert? ### Alert Workflow 1. **Analysis phase:** Identify important levels 2. **Alert setup:** Set alerts at those levels with clear reasoning 3. **When triggered:** Review the situation, don't react automatically 4. **Action decision:** Execute if conditions still warrant action 5. **Alert cleanup:** Remove obsolete alerts, set new ones [SCENARIO] You set an alert for a stock at $50 support. The alert triggers—price hit $50. What should you do? Don't automatically buy. Instead: 1) Review why you set this alert. 2) Check current news—is the drop due to market-wide movement or stock-specific bad news? 3) Is your original thesis still valid? 4) If everything checks out, execute your predetermined plan. 5) If circumstances have changed, adjust accordingly. The alert tells you to look, not necessarily to act.