As trading on the stock market has increased in popularity and users over the years, there have been other developments that have risen with it. The trading view app is one of these developments and allows traders to track and chart any market of their choice to make more informed and wise decisions regarding their trading strategies.
Another great feature of the app is the fact that it allows users to chart and monitor portfolios. This is a great way to keep up with your own interests within the markets and stay on top of your assets and holdings as you monitor developments.
Besides the app, there are many more ways to monitor your portfolio, so let’s have a look at these below.
Follow Important News Regarding the Company You’ve Invested In
This is probably the most obvious (and most important) aspect of portfolio monitoring because if you’re not keeping up-to-date with the various happenings in the markets and companies you’ve backed, you’re not going to know whether they’re doing well or going under!
Many factors can affect the success, or failure, of a company. These can be both domestic (taxes) and international (currency exchange rates). The best way to keep up to date with your company’s news is to set Google alerts for that company, and all the news related to it will be directly delivered to your email inbox.
Check the Quarterly Results
Second in importance only to the above practice, this is vital for any portfolio holder to study and monitor. These results can give you a good insight into how the company may fair over time. If the results are generally good, then you can enjoy that and continue investing in the company confidently.
However, if the results are consistently bad, you may need to reconsider your stock in the company and think about pulling out. This doesn’t mean that you should run at the first sign of loss or bad results, because every company will have its ups and downs. What’s most important is the company’s consistency over time.
Go Over the Annual Results
If you check the quarterly results religiously but fail to check the company’s annual results, you’re making a dismal error in portfolio management. An annual report is the best way to evaluate a company’s performance over the course of a year.
Using the annual reports, you can compare the company’s performance with its past to monitor its growth and determine whether or not it’s going to carry on growing or stay stagnant. This report also lays out the company’s plans for the future and its strategy going forward.
Combined with each quarter’s results, the annual report will give you a comprehensive look at everything going on at the company in your portfolio.
Monitor Shareholder Patterns
Monitoring and regularly checking the shareholding patterns of the companies in your portfolio will give you a good insight into how the internal workings of these companies are going and whether or not the promoters’ shareholdings are increasing or not.
When the shares of the promoters increase, it’s a healthy sign. These are the owners of the company, which means they probably have the greatest insider knowledge. If they’re confident about the company’s growth going forward, they’re usually on the money.
On the other hand, if the shareholdings of these promoters are continuously decreasing, that’s a bad sign. Do your research as to why these promoters are selling their stakes, and you may uncover an issue that prompts you to abandon ship, too.
Check Promoters’ Pledge of Shares
When promoters’ pledge of shares continuously increases, it could be a sign to be cautious and tread very carefully. Just head over to the company’s website to see their pledge of shares.
Follow Corporate Announcements
When you read corporate announcements regarding the actions of the company you’ve invested in, you’ll get updates about various things like new acquisitions, mergers, new staff appointments, as well as resignations. This information can also be found by accessing the company’s website.
Monitoring your portfolio can take a lot of continuous effort and time. That’s the most effective way to monitor consistently. It’s definitely a worthwhile practice to do, especially if there is a great deal of money at stake.
However, Google alerts and various mobile app notifications have made life a lot easier for investors to manage and monitor their portfolios, with most being able to follow and monitor their portfolios from their phones these days! In any case, monitoring a portfolio is something that shouldn’t be done lightly or carelessly. Make sure you’re thorough.