Keeping track of your investments can be cumbersome. Especially in the past, people created complicated spreadsheets with macros to retrieve data on the market. This was simplified with the introduction of Google Sheets, where you had a function that could retrieve market data from Google Finance. However, the information was limited to the price of shares and did not reflect any market intelligence. This missing piece is crucial for your stock tracking strategy. In this article, we will discuss strategies that enable you to track your assets in the best possible way.
Have a trading plan before you start
Some people simply start with trading and tracking their stocks, without having a goal in mind. Note that it is essential to know what your goal is and that it should be reflected in a plan. This plan should specify the goal (e.g., building wealth for retirement) and specific milestones. Based on this plan, you can determine your risk appetite and market entries, and market exit. Now, you can enter the market and start with a well-balanced portfolio.
Use market data to your advantage
When you are using a portfolio tracker, you might be sucked into daily market fluctuations. This is a common mistake for many traders and results in buying or selling sprees that are based on sentiment and risk aversion. Always take your plan into account and set clear boundaries for yourself. If you have a less risky appetite, you can consider setting a stop-loss order. This means that a stock will be sold once a certain threshold (e.g. % loss or price) has been reached.
Build industry and company news into your strategy
If you purchase a stock, you should have an idea about the industry and the company in particular. This is a more important denominator for the value of the stock than the daily fluctuations are. As long as the company keeps performing, you can assume that the stock will rise. The same holds for the industry the company is part of. Therefore, you should track the news regarding financial statements, quarterly reports, and industry analyses.
Portfolio trackers with intuitive notifications
To stay up-to-date on the happenings around the stocks you’re interested in, you can leverage a portfolio tracker. When you have your portfolio in place, you can select the notifications you want to receive. Next to that, the algorithm makes sure you will receive a push notification that is relevant to your stock and industry. For example, when a major fluctuation in the stock takes place. This allows you to swiftly respond to market changes, without the need to track the market continuously.
Create groups within your portfolio
If you plan to create several chunks of investments like the example of an investor below. You can leverage a portfolio tracker to create these groups. This allows you to get an overview of your investments according to your plan. You can measure their performance against the goal you have set and monitor if you are on track.
|Long-term||20-30 years||Retirement fund|
|Short-term||2-5 years||Wealth increase through growth stocks|
How does this process work for cryptos?
Cryptocurrencies are somewhat different from other stocks, as they are more volatile and share price is heavily dependent on sentiment. Especially for these markets, it is important to stay ahead of the game through the news about market changes. A cryptocurrency tracker such as Delta can help you stay up-to-date while connecting directly to your wallets (based on the public key only).