Introduction
Trading in the stock market does not end when you choose to buy shares online after conducting thorough research. It also includes the implementation of various strategies to gain significant profit from these stocks. You can only implement the right technique for your stocks if you monitor your holdings or the portfolio.
It can be challenging to keep an eye on your portfolio, but with a few tips and the use of some helpful tools, you can manage it well. Let us understand some key metrics and tools involved in portfolio management and monitoring.
Understanding Portfolio Basics
A portfolio is a financial tool that displays your financial investments such as stocks, bonds, commodities, etc., you hold in one place.
These may also include investments made in art and private investments. Your portfolio displays the overall net worth of your holdings, gives you insight into the profits or losses for an individual investment and other important ratios.
Once you have invested in certain financial instruments, keeping track of them is equally important. This helps you understand their trends and balance the losses (if any) with other investments. Tracking your portfolio can be done using various metrics such as performance benchmarks, Return on Investments (ROI), etc.
To create a profitable and sound portfolio, the management of your portfolio is key. This means to generate maximum profits and reduce risks or losses generated by your investments. One of the most common ways to do this is by implementing diversification. Let us look into tools that help monitor portfolios.
Tools for Portfolio Monitoring
There are many tools available in the market that help you monitor and manage your portfolio with ease. However, before you decide to use a tool, ensure that it has the following features:
- Resource Management: This helps you track and optimise your resources to adjust your allocations and to maximise returns.
- Strategic Alignment: This helps you keep track of your long-term goals and ensure that your investments are in line with your risk tolerance and financial goals.
- Performance Analytics: This helps you get the detailed analysis of your portfolio’s performance over time. By using metrics and performance indicator reports, it helps you identify trends.
- Predictive Analysis: This uses historical data and various statistical models to predict future market trends. It helps you evaluate how the market’s performance can impact your portfolio’s performance.
- Automated Trading: By using various software features and algorithms, you can set some instructions that can help you buy or sell a stock based on your set conditions. This way, you do not have to worry about getting the timing right and managing losses.
Setting Up Alerts and Notifications
Setting alerts can help you time the market and buy or sell a stock when it reaches the price you wish. Here is how you can set an alert for the stock of your choice:
- Select the stock you have been studying.
- Study its current prices, performance history and current market trends.
- Set a target price to buy or sell the share.
- Right click on the share/stock of your choice and go to “Set an alert”.
- You will be able to see a pop-up on your screen to set an alert.
- Set your conditions based on your target. If you wish to set a buy target for a certain price, set it at Rate and select the condition as <=.
- Enter your target rate in the given space and select the actions as Buy.
- You can also write yourself a customised message you want with your alert.
- Finally, click on Add.
Conclusion
Portfolio monitoring is one of the key aspects of trading in the stock market. It helps you stay informed and updated about the current market conditions and their impact on your investments. By using various tools and investing in a reliable trading platform in India, you can ensure a knowledgeable and fun trading experience.
