6 tricks to keep on observe with the inventory market
How to Track and Keep Track of the Stock Market
You can use various tools and technologies to track the stock market and take advantage of the underlying volatility.
The equity markets can only be very rewarding if one understands market trends and important macroeconomic and geopolitical developments. However, the dynamism of stock markets makes them a high risk asset class and daunting for inexperienced investors.
However, the shift towards remote working structures has encouraged people to actively participate in stock investments in their spare time, resulting in a significant increase in reported trading volume on major exchanges around the world. In addition, the ongoing bull run sparked by the V-shaped macroeconomic rebound makes this an ideal time for novice traders.
Given the substantial amount of risk, investors can review market trends in the following ways to protect their portfolios and maximize returns.
Stay up to date with the latest market news
Keeping track of the latest happenings domestically and globally is vital to becoming a profitable trader. Given the highly sensitive market reactions and analyzing the potential impact of news, investors should identify the perfect entry points as well as the appropriate timeframe to hold a particular stock.
For example, Plus500’s News and Market Insights Outlet is a highly accredited news source that covers global markets and provides detailed insights for both investors and traders. Keeping track of such news platforms will help you better analyze the stock market and identify companies that may consistently generate oversized returns.
Track macroeconomic parameters
Real-time macroeconomic data has a significant impact on stock markets as it affects the operations of virtually every company and affects aggregate demand and supply in countries. For example, the robust vaccination campaigns in the United States and the faster-than-expected general economic recovery have pushed government bond yields up sharply, causing technology stocks to plummet in recent months. However, given the rapid integration of technology in virtually all sectors and the industry’s growth potential, the ongoing market correction could be the best time to invest in these growth stocks.
Use technology (apps)
The majority of brokerage firms and financial websites have developed personalized apps in this digital age. These applications are accessible from most electronic devices and can help part-time traders keep track of the latest developments without affecting their day-to-day jobs.
Such apps can help investors keep track of the latest developments in the market. In addition, they can also see the reaction of the broader market to such an event, which gives them an overview of the impact of certain news.
For example, in early April, a stunning employment growth report and rising consumer spending as tracked by the CPI drove the Dow Jones Industrial Average (DJIA) to its all-time high of 34,035.99. The easy access to such market-moving news and the real-time price fluctuations of benchmark indices and blue chip stocks should help beginners decipher how stock markets work.
Sign up for automatic notifications
Financial and investment magazines usually provide instant notification services to readers. In addition, reputable websites often publish daily or weekly newsletters that provide readers with a condensed description of key market developments.
Such free email notification services can be helpful for investors to instantly follow the latest market news and enable them to buy or sell stocks accordingly. Given the very time sensitive market reactions, instant notifications should enable them to make significant profits from their deals.
Use portfolio trackers
Portfolio trackers help investors select the best stocks to invest in based on their goals and preferred risk-return exposure. With more than 3,000 stocks trading on the United States stock exchanges alone, choosing the ideal stock can be a challenge, especially for beginners. Portfolio trackers are designed to shortlist potential candidates based on preset parameters.
Investors who want to invest in undervalued stocks with enormous growth dynamics, for example, can select limits for various valuation metrics such as price-earnings and price-sales ratios. For the growth aspect, investors can use portfolio trackers to set limits for profit and sales margins as well as consensus estimates in order to filter out the best possible stocks.
Watch out for institutional trades
Following in the footsteps of popular industry gurus can be very helpful. Their decades of experience and extensive market knowledge enable them to bet on the biggest winners of the future, regardless of the development of the stock in the current periods. To illustrate this with an example, renowned investor Cathie Wood began betting on the electric vehicle stock Tesla, Inc. back in 2019, when most investors were heavily shorting the stock. A year later, Wood’s wager on TSLA stocks made her investment firm one of the most profitable companies. However, before following such investment gurus, beginners should make sure that their goals and objectives for trading are in line with the respective Mughals.
Many people find stock market investments immensely impressive and discourage them from using their savings for fear of loss. However, over the years, many companies and services have been developed to make stock trading beginner-friendly. As retail investments continue to grow in importance, new investors should try following the steps above to keep up with the rapidly changing industry.
This article does not necessarily reflect the opinion of the editors or management of EconoTimes.