In earlier days, stock trading was arguably simpler. If one purchased high caliber and good quality stocks, the possibility of them being able to sit on the stock for a long period of time and then claim heavy returns on their investment was almost certain, and thus the question of how to monitor your stocks never really arose. However, in today’s day and age, with the sheer number of factors that can impact a stock’s performance, there is no longer space for one to be able to purchase a stock and count on waiting for a long period of time to make a sure-shot gains. In order to succeed today, investors have to keep a sharp eye not only on their investments, but also on the happenings of the industry and the micro movements and developments in the companies they have invested in, as these tiny aspects will almost certainly make a difference.
What does monitoring your stock holdings mean?
Most digital mediums of online trading such as online broker applications are likely to have a user friendly interface that displays an investor’s investments alongside other nifty information such as the LTP (last traded price), the % change per day as well as percent change since purchase. However, the question of tracking your stocks far exceeds just taking a glance at these numbers..
Monitoring your stocks requires a holistic approach not only to your investment but to the business dealings of the company you have invested in as well as other aspects such as its PR , branding etc. For instance, if you are not aware of a scandal at a firm you have invested in, you are likely to miss the opportunity to sell off your holdings to cut your losses. If you are up to date on the news however, you can make your move first, allowing you to significantly cut losses.
How to monitor your stock portfolio
Most investors are constantly finding new answers to the question of how to track your stocks and keep updated on how their investments are performing. A key idea here is to monitor the performance of your investment portfolio, but of the company you have invested in. If the company is doing well, your investment is likely to do better as well.
Read the News : Social media has revealed an entirely new face to trading. Keeping up to date on happenings in the economy and market on all scales can provide a pivotal advantage as the faster you are updated on happenings, the quicker you can act in order to see gains or cut losses
Keep tabs on announcements: Brokerage apps are likely to assist investors with this process, as some offer the feature of notifications about when the company is likely to have an event or make an announcement. Not just the announcement but the news of the announcement is also likely to influence public perception and therefore, your investment portfolio. This is a key aspect of how to monitor your stock portfolio.
Focus on the Hows and Whys : Learning that a company is not being able to make profit is one thing; figuring out why is another. For instance, a company that is posing losses on a yearly basis might cause an investor not to invest. However, learning that the company is currently burning cash on consumer acquisition and has plans to scale operations to turn a profit might cause an investor to make a significant earning upon holding this stock.
Keep an eye on quarterly postings: Having information about quarterly results of a company is a good practice when it comes to how to track your stocks. Not only will it give you insight into the companies performance, but will also help you gauge long term trends and possibly make predictions accordingly
How to monitor your stocks is an important question every investor should ask themselves. Purchasing a stock is very different from understanding the stock in depth and making decisions accordingly. Knowing how to track your stocks and what to look for can prove pivotal in making an earning or avoiding losses. A keen understanding of how to monitor your stock portfolio will also aid in an overall better understanding of the market, its functionings and will definitely make you a better investor.