As we all know, investing is not an easy task. You have to do a lot of research before investing your money in any asset. But most of the people are not able to do that research in a proper manner and lose their money. According to the famous investor warren buffet, he has only two rules in investing.
The first rule is don't lose your money while investing.
Do not forget the first rule.
Let us talk about the things which helps you in tracking yourstock portfolio tracker effectively.
Here Is The List Of The Things That Help You In Tracking Your Stocks Effectively:
1. Investors Must Have A Fact Driven Temperament:
It is a temperamental quality not an intellectual quality you do not need tons of IQ in this business, you need a stable personality, you need a temperament that neither derives great pleasure from being with the crowd or against the crowd because this is not a business where you take polls, it is a business where you think. It is said by Ben Graham that “ You are not right or wrong because a thousand people agree with you and you are not right or wrong because the thousand people disagree with you, you are right because your facts and reasoning is right.
2. Study The Business Not The Stock Price:
Most of the investors only focus on what stock is likely to do in the next year to avail all kinds of all kinds of arcane methods of approaching that but they do not really think of themselves as owning a piece of a business that the real test of whether you are investing from a value standpoint or not is whether you care whether the stock market is open tomorrow if you making the good investment in the security it shouldn't bother you if they close down the stock market for five years. Prices are not an indicator to choose the stock you should study the business if you want to do value investing. With the help of portfolio management software you can easily study the business model of the company without facing any difficulty.
3. Only Buy Things You Understand!
It is an intellectual process, intellectual process is defining your level, defining your area of competence and valuing businesses and then within that area of competence finding whatever sells at the cheapest price in relation to value. The portfolio management software also gives you additional information about the business model of the company which is essential for your investing. But if you do not know about a particular asset then you will definitely lose your money in that investment.
4. Focus On The Long Term:
Long term investing or value investing is the best way to earn the higher returns on your investments. Rather than focusing on the particular price you should consider the business of the company, if the business of the company has the potential to grow in the future then you will definitely get handsome returns on your investments. But if the business is struggling for its survival and if there is no valid reason to improve anytime soon, then you should have to sell that stock because it can diminish your profit margins.