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How to Monitor Stock Portfolio.


Hello investors, in today's post, we will discuss how we can track our stock portfolio in a simple and effective manner. Here, We are not going to discuss how we track our profits or how much money we made from the market. There are many such websites and apps that can help you track profit and loss.

Here, We are going to discuss how to monitor the performance of the holding stock. How is the company doing it, is the company's performance improving or decreasing?

My main objective of this post is to explain you monitoring the company’s performance and growth.

It is important to make a good stock portfolio, likewise, monitoring the performance of holding stock in stock portfolio is equally important.

So let's study how we monitor our stock portfolio.

1. Keep an eye on important news about the company.

Keep update yourself by the important news related to the company and the industry. There are many factors like domestic factors (government news, politics news, inflation)  international factors (currency exchange rate, oil price) can directly effects company’s operation. Therefore, it is important that you keep yourself updated by important news related to the company. In addition, you can use various financial sites such as MoneyControl.com, Investing.com to read important news related to the company.

2. Read the quarterly result of the company.

The listed company in the Indian stock market announces its financial results four times a year. It is important to study the financial results of your portfolio company, if the financial results of the company are good then it is fine. Even if the results are bad, you do not even need to get distracted by a bad quarter results from the company. In any business, there is occasional loss, but what is most important is consistently, but yes, if the company is giving bad results again and again, then you need to reconsider that company stock.

3. Monitor company corporate announcement.

It is also important to read about company corporate announcement such as the new acquisition, merger, senior management appointment or discontinuation. You can find all these information on the company's website.

4. Monitor the shareholding patterns.

You also need to check the company's shareholding pattern. Mainly investigating the promoter shareholding. Increasing the promoter shares in the company is a good sign. The promoter is the owner of the company and they have more knowledge about the company. They are usually right because they are optimistic about the future growth of the company.

However, if the promoter's share is continuously decreasing in the company's shareholding pattern, then this is a bad sign. Investors should investigate why the promoters are selling their shares.

5. Monitor pledged shares of promoters.

If the promoter is pledging their shares, then this is the sign of caution. If the promoters are continuously pledging their shares, be careful. By visiting the site of nseindia.com, you can get information about the shares pledged by a company promoter.

However, additional time and effort are needed to monitor your portfolio stock. Nevertheless, if your portfolio has a small number of stocks, like 8-10, then you won’t need much time to monitor your portfolio.

6. Read the annual report.

Reading the company's annual report is the best way to evaluate the company's performance. Using the annual report, you can compared company's performance, with its previous performance, and check its growth. You can read more about future plans and strategies in the company's annual report.

I hope my this post will helpful in your stock portfolio management. If there is any doubt in your mind then tell me I will answer your every question.

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