As more companies announce their IPOs each day, the stock trade market is bound to grow larger and larger. This is good news to potential trade investors who want to take advantage of lucrative stock industry. However, not every stock you put your money on will pay off and this is why you need tools like a trade alert scanner to help make informed decisions.
The trade market is equal to that large mega mall that opened a few blocks away. It is exciting to go in and explore the mall as a first visitor. However, you can easily get lost in there if there are no visible signs to tell directions. You wouldn’t know where to get what and sometimes you may end up using up your money before you get to the shops that you really needed to visit.
The same can be said about an alert scanner. It is simple software to work with on the surface, but underneath it packs sophisticated algorithms that help you sift out the stock market. Any expert trader knows that trading every stock alert you receive is detrimental, which is why they have expert market analysts to advice them every single time.
What a Trade Scanner Does
An alert scanner works by filtering out all low quality stock from the market. These are usually the stocks that are highly volatile and very risky to trade in. This alert scanner will only highlight the most lucrative trades for you, usually a manageable 20 stocks a day.
Filter Out Stocks
With an alert scanner, you can set the filtering parameters for your trading. Experts recommend filtering trader by volume and float. Stocks with the lowest floats (those below 100 million in shares) or those with high relative volume usually carry high interests. These will be great to trade in. This scanner also helps you determine the stocks with a high gap over resistance or gap below support which are also lucrative.
Know when to trade
An advanced trade scanner usually sets the trading window between 8pm to 8am. After 8 pm is the best time to scan for trades that moved up during the day and also see the stocks that get affected by current events the next day. Before 8 am is the best time to scan for pre-market stocks moving up.
Conclusion
You can do so much with a trade alert scanner than a veteran stock trader has done for years. You only need to find the trade scanning software that can be tweaked to suit your trading needs.
