Tools To Utilize To Make Better Stock Investment Decisions
The way most people perceive it, the stock market is an excellent avenue for passive wealth building. But, only a few realize that stock investing is not as passive as it is thought to be. That’s often the differentiator that sets a hobbyist apart from a serious investor.
Modern share market apps have noticed this and responded by providing some resourceful features for those who actively want to double down on their stock investment strategies and maximize returns. Some of these features or tools include:
1. Watchlists:
Watchlists can be thought of as radar. Different stocks can be shortlisted and grouped into a watchlist based on different objectives. For example, if you want to invest in rising stocks of a particular sector but are afraid of market volatility, a watchlist will be your detective. Watchlists are great if you’re setting your eyes on particular stocks and want to know how they perform over time before making a decision.
2. Live Charts:
Live charts provide a real-time overview of stock price trends. Specific stocks can be selected, and their price trends, along with historical performance, can be viewed in one window. The granularity of this feature may vary depending on the share market app being used—for example, some apps may allow you to select individual stocks, while others may allow only indices or preset lists to be selected.
3. Stock Screeners:
A stock screener is a filtering tool. They’re specifically useful when you’re sure of what type of stock you want but don’t have a specific name in mind. Stock screeners can help you filter stocks by close price, sector, market cap, index, etc. They save you from the effort of having to scroll through the list of irrelevant stocks until you find the right one.
4. Price Alerts:
Price alerts are notifications that alert you of the right opportunities to invest in stock market. They can be set for different stocks, so you can make a trade when the chosen stock hits your desired price. This saves time and frees investors from the anxiety of missing out on favorable trading opportunities.
5. Portfolio Analytics:
While not exactly a tool but a reporting feature, portfolio analytics provide a bird’s-eye view of the stocks you’ve purchased. You can track your gains, losses, sector allocation, risk allocation, and other metrics. This can help you quickly identify what adjustments you need to make in your portfolio to maximize the chances of attaining your investment objectives.
How to Optimally Use Such Investment Tools?
– Define what you’re trying to achieve. Your goals will determine which tools you’ll use most frequently.
– Create a routine around these tools. For example, checking watchlists every morning, doing portfolio analysis once every week, etc. This will ensure that you don’t overdo your observations, saving you from impulsive decisions.
– Use the tools in combination; for example, watchlists can be combined with price alerts for the most desirable stocks.
– Update your filters, stock lists, etc., based on what works best for you as time progresses.
Share market apps provide a huge range of tools to help investors make better decisions. While these tools are helpful, their true efficiency lies in the investors’ own proficiency and knowledge of the tools’ utility. Thus, investors are encouraged to try out such stock market tools as they arrive on their trading platform to understand their utility better.