Optimizing your investment strategy based on learnings from a stock tracker
When you want to invest for the long term, you need to have an investment strategy. This strategy should consist of principles you adhere to, as well as divisions of asset allocation. If an investor does not stick to these principles, he/she is simply a trader that does stock picking. However, when you have a strategy in place, how do you know if it works? Many people have relied on spreadsheets to provide them with an overview. When (Internet) brokers started to evolve, they also provided insight into this. With the introduction of the stock tracker, there is another tool that investors can leverage. In this article, we will look at the tracker and see how it can help you to improve your strategy.
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Configure your portfolio inside the stock tracker
A stock tracker is a powerful piece of technology as it allows you to integrate directly with your brokers. This happens securely through API. When you have connected your brokers, you have a real-time overview of all your holdings. Next to that, you can view the transaction fees of specific stocks across brokers, to select your preferred broker for that transaction.
Start the bucketing
Once your portfolio is in, you can create buckets of stocks. For example, you can cluster your dividend stocks together, or create a cluster of technology stocks. When you have them in a separate portfolio, you can better track their progress and adjust accordingly. For example, if your dividend stocks are outperforming your growth stocks (e.g., technology), you know that you need to revisit the composition of your portfolio.
Market updates and analysis at hand
When you are investing, you need to understand what is happening on the market. Within a stock tracker, you will find all relevant market and stock-specific information. This allows you to make educated decisions when making a trade. You can set push notifications per your liking, allowing you to only check your portfolio when needed (e.g., volatile market activities). You can also set thresholds for specific stocks. For example, you can be notified when a specific stock reaches $30, which you consider a buying point. Based on this notification, you can immediately conduct trade with a broker of your preference through the stock tracker. This integrated approach makes you a faster and more effective trader overall.
Naturally, you do not need to have an overview of solely the stocks you own. You can also create other buckets of stocks you see as potential and see how they perform over time. Based on these learnings, you can also decide if you want to invest in them.
Getting started using the technology
Convinced that this technology can help your investment strategy prosper, or do you want to learn more? You can visit the website of Delta.app, a leading provider in the field. They do not only focus on integration with brokers but also allow you to integrate your crypto portfolio. This helps you to have a complete overview across all your asset classes. Simply integrate through API and Public Keys, and you have a safe and secure overview ready at your disposal.