With the emergence of the investment tracker, more people are keeping track of their stock portfolio. While monitoring your stock portfolio has benefits, several challenges come with it. To effectively track your investments, you need to understand why you track them in the first place. In this article, we will discuss how to use an investment tracker and how this will help you get the most out of your portfolio.
It’s about the companies you invest in
When you are interested in tracking investments, you will shift from a company-centered to a stock-price-centered approach. Instead of looking at the value of the company, and what it generates through its activities, you only see a share price going up and down daily. When you monitor investments, focus on the quarterly reports and industry disclosures to understand if your stock is doing well and if that is likely to continue in the future.
Think long-term for a majority of your portfolio
The above-mentioned does depend on your strategy. Often investors have both value and blue-chip stocks as well as growth stocks. When it comes to the latter two, it is relevant to think about the long-term. Daily fluctuations provide lots of noise to what matters: the long-term growth of your portfolio. If you are also looking at short-term gains (e.g. through growth stocks), consider creating separate portfolios in your investment tracker. You can enable notifications for the stocks that are relevant for short-term strategies, and leave the long-term stocks as they are.
What about cryptocurrencies?
Cryptocurrencies come with a completely different risk appetite. As highly volatile coins are traded day and night, prices can surge or depreciate as the result of a single news article. Traders often praise the profits that can be made from cryptocurrency trading, but forget to mention it requires lots of time to track the market.
How a tracker can help
Having a cryptocurrency tracker can already make a big difference in how you monitor the stocks. For example, the Delta crypto tracker provides you with notifications based on preferences and the algorithm. This allows for personalized notifications relevant to your holdings and fluctuations. Hereby you are sure to be up-to-date about the market, without needing to continuously check Coinmarketcap and other information sources.
Connecting your wallet(s)
Cryptocurrency trackers can seamlessly integrate with your wallets. For example, in case you have a coin with a Proof of Stake algorithm, your holdings are automatically updated based on earnings made. This is entirely safe: you only need to provide your public key, allowing the tracker to trace all transactions of that key on the blockchain.
A financial plan is a document that includes every detail of a person’s savings, debts, cash flow, investments and all the other elements of his/her financial life. Having a solid financial plan will help you to handle your money properly, organize your life and bring the balance between income and expenses. It will also help you to fight against all of your financial struggles and allow you to achieve success.
Exchanges can also be connected
Connections with exchanges can also be established through an API. The tracker can receive the full history of trades, whereas some withdrawals and deposits are also supported. Note that it is not recommended to keep coins within an exchange. For example, you do not participate in the Proof of Stake mechanism and therefore miss out on the earnings.
