In the financial markets, technology plays a major role. Large companies like hedge funds use automation and algorithms way before Google and Amazon did. Computers are fully managing the money now, but this is not a market where you just easily develop it and that is it. For investors, it is very important to be able to accurately track what the market is doing in an instant. That is why many people, not only companies, can benefit from a portfolio tracker. In this article, we focus on what is an investment portfolio and what are the benefits of a portfolio tracker.
What is an investment portfolio?
An investment portfolio is a collection of financial assets like stocks, bonds, commodities, currencies, and cash equivalents. This is owned by an investor, which can be an individual or company. You start an investment portfolio by creating an online account at a brokerage website. You transfer the amount of money that you want to invest and then think about the types of investment you want to do.
Tip for beginners: do not monitor continuously
When you start investing, try to not look at them all the time unless you want to do day trading. Otherwise, you might want to stop investing. It is recommended to focus on the long term. At that time, you hope you can sell the investment for a better price than what you paid.
Benefits of being able to track your portfolio
When you start with your investment portfolio. it can be that you use different brokerage websites to start investing. The reason can be that certain stocks or currencies are available somewhere else, or because you want to diversify your portfolio. If this is the case, then a portfolio tracker might come in handy.
What is a portfolio tracker?
A portfolio tracker is a program that can track the movements of your investment portfolios. Many portfolio trackers, therefore, include a stock market tracker, so you can follow the market behavior. It also helps you to manage your various investment portfolios in one overview, where you can easily track performances based on your trading and exchanging behavior. Other benefits are:
- A number of portfolio trackers can be used without making any costs. They have a free option, but there is a possibility to purchase an upgrade in case you want a better experience. For beginners, this is very helpful.
- All types of investments can be followed in one place, so you do not only have to focus on stock, but you can also consider ETFs, currencies, and bonds.
- Saves you a lot of time, since a stock market tracker can load all of the data that you want to know of your investments in milliseconds. A tracker should focus on real-time data since you cannot trade your investment when the prices are from a few minutes old.
As mentioned before, many portfolio trackers have a free option. It is good to get to know the platform and see what works for you. Do keep in mind to invest with the money that you can miss.