How to Set Up Your First Price Increase Alert (3 Steps)
- •Step 1: After entering a position, immediately go to StockAlert.pro and search for that stock (e.g., TSLA, NVDA, AAPL)
- •Step 2: Select "Price increases by %" and enter your profit target (recommended: +10% for first target, +20% for second)
- •Step 3: Choose your notification method (email, SMS, or both) and save - you're done!
That's it! You'll receive automatic alerts when your position reaches each profit milestone. No constant portfolio checking or emotional decisions about when to sell.
Understanding Percentage Gains and Profit Taking
Most traders fail because they sell winners too early (out at +3%) or hold too long (watching +30% turn into -10%). Percentage gain alerts remove emotion by executing your profit plan automatically.
- •Baseline Price: The stock price when you create the alert. Typically your entry price or the price when you start tracking momentum.
- •Percentage Gain: How much the stock has moved up from your baseline. +10% means stock is 10% above your entry.
- •Profit Ladder: Setting multiple alerts at increasing percentages (+5%, +10%, +20%) to scale out gradually.
- •Trailing Behavior: Creating new alerts as price rises to lock in gains. Example: After +10% gain, set new alert at current price +10%.
Real-World Example: Tesla (TSLA) Momentum Run
A swing trader bought Tesla (TSLA) at $200 in early 2024. They immediately set gain alerts at +10% ($220), +20% ($240), and +30% ($260). Week 1: TSLA hit $220, triggering the +10% alert. They sold 30% of position, booking profit. Week 3: TSLA hit $240 (+20%), they sold another 30%. Week 5: TSLA hit $260 (+30%), they sold another 20%, keeping 20% for trend continuation. TSLA eventually reached $285 (+42.5%) before pulling back to $255. By scaling out systematically, they captured +24% average exit vs the single-best price of +42.5%. But crucially: they avoided the common mistake of selling entire position at $210 (+5%) or holding through the pullback.
Profit Taking Strategies - Comparison
| Strategy | Alerts Used | Average Gain | Pros | Cons |
|---|---|---|---|---|
| All or Nothing | One at +15% | +15% if hit | Simple, max gain if perfect | Often sells too early or holds through reversals |
| Profit Ladder | Three at +10%/+20%/+30% | +18-22% | Balances gain vs holding | Leaves some on table |
| Trailing Strategy | New alert every +10% | +25-35% | Rides trends fully | Requires active management |
Percentage Gain Math
- •Formula: % Gain = ((Current Price − Baseline Price) / Baseline Price) × 100
- •Example: Enter at $100 (baseline), stock at $115. % Gain = ((115 − 100) / 100) × 100 = +15%
- •Baseline is FIXED when you create the alert. Does NOT update as price moves.
- •For trailing stops: Create NEW alerts at new baselines as price rises.
- •Asymmetric returns: A +100% gain can become a -50% loss. Protect winners aggressively.
Note: A +50% gain only requires a -33% drop to break even. Protecting profits is mathematically critical, not just psychological.
Use Cases & Scenarios
- •Swing Trading Exits: Set +8%, +12%, +18% alerts to scale out of 2-4 week positions.
- •Momentum Tracking: Set +5%, +10%, +15% to identify acceleration. Buy MORE if momentum continues.
- •Position Sizing Down: Reduce position size as gains accumulate to manage risk (up 50% = sell half).
- •Trailing Profit Protection: After +20% gain, set new alert at current price +5% to lock in most gains.
- •Day Trading Targets: Set +2%, +3%, +4% for intraday momentum scalps.
- •Long-Term Compounding: Set +50%, +100%, +200% on core holdings to celebrate milestones and rebalance.
Strategies & Best Practices
- •Set profit alerts IMMEDIATELY after entry. Don't wait - discipline fails without pre-commitment.
- •Use the 3-tier ladder: Sell 1/3 at +10%, 1/3 at +20%, keep 1/3 for home runs (+50%+).
- •Adjust for volatility: Low-vol stocks (+7%, +12%, +18%), high-vol (+15%, +30%, +50%).
- •Check RSI when alerts trigger: RSI >75 = likely reversal soon, take full profits. RSI 55-70 = momentum intact, hold partial.
- •Never sell everything at first target: Biggest mistake is missing +100% runs by exiting at +10%.
- •Let one runner go: Always keep 10-20% position indefinitely to capture outlier gains.
- •Combine with time: If +10% in 2 days = too fast, take profits. If +10% in 3 months = momentum weak, exit all.
- •Reset alerts after taking profits: If you sold 30%, create new alert from current price for remaining position.
Common Misconceptions
- •"I should hold for the maximum possible gain" - No. Nobody exits at the top. Scaling out captures most of the move without the stress.
- •"Taking profits at +10% means I missed the +50% gain" - No. You locked in +10% for sure AND kept exposure for more upside with remaining position.
- •"Percentage alerts only work for short-term trades" - False. Long-term investors use +50%, +100%, +200% alerts to rebalance and manage position sizing.
- •"I can manually watch and sell at the perfect time" - No you can't. Emotion takes over. Pre-set alerts remove emotion from profit-taking.
Context & Combinations
Combine gain alerts with "RSI Limit" (>70 overbought = take profits), "New 52-Week High" (momentum confirmation = hold longer), "Volume Change" (volume surge with gain = strong move), and "Daily Reminder" (review positions regularly). This creates a complete profit-taking and momentum-tracking system.
Profit Taking Checklist
- •Immediately after entering any position, set gain alerts at planned profit targets (minimum 2 levels).
- •When first alert triggers (+10%), sell 25-33% of position to lock in partial gains - no exceptions.
- •Check trend context: Is stock still above 20-day moving average? Is sector strong? If yes, hold remaining position.
- •When second alert triggers (+20%), sell another 25-33%. You now have 50%+ gains banked.
- •Set trailing alert for remaining position: Current price minus 10-15% to protect gains.
- •Review weekly: Are you holding winners too long or selling too early? Adjust % targets based on results.
Advanced Technique - Dynamic Profit Targets
Professional traders adjust profit targets based on market conditions. Bull market (VIX <15): Use wider targets (+15%, +25%, +40%) to ride trends. Bear market rally (VIX >25): Use tight targets (+7%, +12%, +18%) as reversals are faster. Choppy market: Use symmetric exits - sell when gain equals 2x your risk. Example: If you risked -5% with stop-loss, take profits at +10% (2:1 reward/risk). This dynamic approach adapts to volatility and improves win rate 15-20%.
Mini Case Study - Momentum Swing Trader
A momentum trader took 24 swing trades over 12 months using 3-tier profit alerts at +8%, +15%, and +25%. Entry rule: Only buy breakouts with volume. Exit rule: Sell 1/3 at each alert. Results: 16 winners, 8 losers. Average winner: +17.3% (weighted average of scaling out). Average loser: -6.2% (stopped out). Win rate: 67%. Total return: +94% vs buy-and-hold +23%. Key insight: By scaling out, they avoided the pain of watching +20% winners reverse to +5%. The profit ladder removed emotion and kept them in winning positions longer than their instinct to "take profits" at first sign of green.
Top Stocks to Track for Momentum (2025)
Consider setting gain alerts on these momentum leaders with explosive potential: Tesla (TSLA) - use +12%, +25%, +40% due to high volatility; NVIDIA (NVDA) - use +10%, +20%, +35% for AI momentum; Coinbase (COIN) - crypto proxy, use +15%, +30%, +50%; Palantir (PLTR) - growth story, use +12%, +25%, +40%; Amazon (AMZN) - large cap momentum, use +8%, +15%, +25%. Browse our stock discovery to find more stocks showing price acceleration.
Conclusion
Percentage gain alerts remove the hardest decision in trading: when to take profits. By pre-setting targets and scaling out systematically, you lock in gains without the regret of selling too early or too late. Join thousands of disciplined traders who use automated profit alerts to compound winners.