Last Updated on 19 September, 2022 by Samuelsson
Whether you are a newbie or an experienced trader interested in swing trading, swing trade alerts can help you achieve your dreams faster. As a swing trader, you will find swing trade alerts very useful because they save you many hours of work scanning, selecting stocks, filtering, charting, and analyzing the markets.
It doesn’t matter if you already have your own trading strategy, getting and using swing trade alerts can help you to diversify your risk because no one strategy works in every market condition, and changes in market conditions can be quite subtle. So, it makes sense to have more than one way to play the market.
In this post, we will be discussing what swing trade alerts are, the benefits, choosing the right swing trade alert, and how to effectively make use of the alerts you receive. However, let’s understand what a swing trade is.
What does a swing trade imply?
A swing trade is a trade that lasts more than one day but not more than a few weeks. The trade tries to capture the medium-term price moves which are the individual swings on the daily timeframes. Each of those swings, on average, lasts from a few days to a few weeks — rarely do they last up to several weeks. Swing trading aims to profit from a single price swing at a time rather than ride the trend with its multiple upswings and downswings.
Since the interest is on the price swings on the daily timeframe, it is important to know when a new price swing is beginning and when it about to end so as to enter at the beginning of the swing and get out before it ends. Swing traders mostly use technical analysis to time the market. As you know, the price can be in an uptrend, downtrend, or move sideways. For a trending market, it is best to trade the swings in the direction of the trend and avoid pullbacks.
In a market that is moving sideways, you can trade in both directions if you are trading forex, but in the stock market, it’s wise to only look for buying opportunities because stock prices have limited downward potential but the potential to keep climbing up is unlimited. To find a potential swing trade, traders use different strategies, including technical strategies but may sometimes use the fundamentals factors to screen to stocks to trade.
A good swing trading strategy will show you when to enter a trade, where to exit with a small loss, and where to take profit before the price reverses to start the opposite swing. So, it is an easy way to play the market without getting your capital tied up to a non-performing stock for long. While you can learn to analyze the market on your own, it is easier to subscribe to a swing trade alert.
What are swing trade alerts?
Swing trade alerts are notifications of swing trade setups in the market, which is sent by a signal provider, but you must subscribe to the provider to receive the alerts. A swing trade alert provider is usually an experienced trader who sells his trading signals to make more money or a financial firm that specializes in market research and analysis.
Whoever the alert provider is, swing trade alerts are often sent via email, SMS, Skype, WhatsApp, or Telegram. When the subscriber receives a trade alert, s/he will have to manually execute the trade or as well choose to ignore it. A swing trade alert message from a provider normally contains information about which stock to trade, the direction of the trade (buy or sell), the trade entry level, stop loss price, and profit target.
Some providers of swing trade alerts may also attach charts and explanations of their trade analysis in the signal package they deliver to their subscribers. With the explanations, you may get to understand the reasons behind the trade setup, making you trust the trades and execute them properly for optimal results. In addition, those charts and explanations can help improve your trading knowledge.
Hence, it doesn’t matter if you’re a beginner or an experienced swing trader, subscribing to a swing trade alert service can help you to achieve your trading goals faster. However, you should be careful with the type of swing trade alert provider you choose because not all swing trade alerts are worth your time and money. Take your time to understand how swing trade alerts work and choose the one that suits you.
How do swing trade alerts work?
Swing trade alerts work in a very simple way. It takes away the hard part of trading, which is to look for trading opportunities in the market — selecting stocks, analyzing them, and spotting trade setups. But with swing trade alerts, trading is a bit different; you don’t get to scan through the charts of countless stocks looking for a trading edge.
Here is how swing trade alerts work:
- You subscribe to a swing trade alert service
- The provider sends you trade alerts via emails or any other messaging system from time to time
- The trade alert tells you which stock to buy or sell and the parameters for managing the trade, including the stop loss price, where to take profit, when to move stop loss to breakeven, and when to close a portion of the trade
- You execute the trade as recommended and make your money if the trade is successful or a small loss if it gets stopped out
- With a good swing trade alert, you will make more money than you lose over the long term
The benefits of swing trade alerts
There are many benefits of subscribing to swing trade alerts, and these are some of them:
- As a beginner, you earn while you learn: Swing trade alerts enable you to start making money from the market even as a beginner who doesn’t yet know how to spot tradable opportunities in the market. You simply receive trade alerts from the provider, execute them as recommended, and make your money. Moreover, you get to learn about the factors that move the markets if the signal provider attaches charts to the signal package and offers explanations of the trade setups. From the analysis and the explanations, you can decipher the factors that make up the trade setup, the reason behind them, and how they influence price movements.
- If you are already trading, you will get to improve your trading: Say you already have knowledge about the financial markets and have been trading profitably, you can still improve your trading with swing trade alerts. For example, you will get to learn how the signal provider approaches the market, the factors he considers important, and how he analyzes the market to arrive at a trade setup. Furthermore, you get to learn new trading ideas to research, which, if found promising, can be used to create new trading strategies. Thus, quality swing trade alerts can help you to optimize the trading strategies you are already using so that you can make the best out of your trading.
- You will be diversifying your market exposure: No one strategy performs very well in all market conditions. A strategy may do very well in a trending market but perform poorly in a ranging market, while some other strategy may work well when the market is moving sideways. So, so an experienced trader, you should have different ways to attack the market, which is what swing trade alerts help you to achieve. With swing trade alerts, you can diversify your exposure in the market. Diversification helps you to lower your overall risk in the market, such that when one approach is doing poorly, another may be doing great and helps to offset the poor results in the other one.
Choosing the right swing trade alert
While swing trade alerts can help your trading, you need to choose the right service for you. The following are some of the factors to consider when assessing the quality of a swing trade alert service and how it suits you:
- The market you intend to trade: The first thing to consider when choosing a swing trade alert service is the markets the service provider caters to. You want to be sure they are the markets you intend to trade. For example, if you intend to trade stocks, the signal provider should be a specialist in stock trading.
- The track record of the swing trade alert service: Another factor is the track record of the signal provider. How long has the provider been offering that service, and how consistent have they been? What has been the performance of their trade alerts over the years; what is their win rate and profit factor? Answering all these questions can help you decide whether to subscribe to their swing trade alerts.
- The person behind the alert service: You should also know the qualifications of the person or persons behind the trade alert service. What experience do they have to offer such services, and how trustworthy are they?
- The content of the swing trade alert package: Take time to consider what is included in the swing trade alert package. An alert package that includes charts and explanations of the trade analysis is preferable if you wish to understand the provider’s reasoning and learn from his/her analysis and explanations.
- The cost vs. your trading capital: Be sure to consider the cost of the alert service and compare that to your trading capital. For example, if you have a trading capital of $1,000, subscribing to a swing trade alert service that costs $40 per month would mean that you have to make at least 48% profit to break even. It is not so much about the cost though. If the service is of high quality, you may have to build up your account size first.
How to use swing trade alerts
Sure, high-quality swing trade alerts can help you improve your trading, but that is only if you implement the trade alerts the right way and keep to the basic principles of trading. Having said that, these are the key factors in using swing trade alerts:
- Managing your account risk: One key principle in successful trading is a good money management policy. How much of your account balance should you risk per trade? We advise that you risk only 1-3% of your trading capital in a trade. So, if you have a $4,000 account, you shouldn’t risk more than $120 per trade. Together with the size of your stop loss and the price of the stock, this will determine the number of shares you can buy.
- Executing trades: It is very important you execute your trades as recommended in the alert package without altering any of the parameters — the stop loss and profit target. Altering them can affect the outcome of the trade. For example, if you reduce your stop loss, your trade may get knocked off before the trade moves as expected, so while the signal provider records a successful outcome, you record a loss. It is better to trade fewer shares than to reduce your stop loss in a bid to reduce risk.
- Managing open positions: If the trade alert package specifies how you manage the trades after placing them, keep to the recommendations. Move your stop loss to the breakeven or close a portion of your trade when the specified conditions are met.
- Keeping records and reviewing your trades: Don’t bother about the outcome of your individual trades because it doesn’t mean much. Rather, keep a trade journal and review your trades after a certain number (sample size) of trades is reached. Your sample size may be 50 or 100 trades so that it accommodates both winning and losing streaks.
Why do you need the Robust Trader Swing Trade Alert
The Robust Trader’s Swing Trading Signal Service delivers high-quality trading signals to your inbox every morning before the New York Stock Exchange opens. With over 6-years record of success, this swing trade alert service boasts of more than 74% winning trades and a profit factor of 2.2, making it about the best swing trading signal for stock trading. The trade alerts are easy to implement as they tell you which stocks to trade, the direction to trade, and when to close your positions.