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Important Tools to Save You Time and Boost Your Portfolio's Performance

Thursday, December 03, 2020 08:05 AM | Nick Dey
Important Tools to Save You Time and Boost Your Portfolio's Performance

Knowing how to use tools can save investors countless hours analyzing stocks by helping them organize and analyze the massive amounts of data available more efficiently.

This can be done using several tools that are widely available to investors. Screeners, trackers, and comparison tools are some of the important instruments investors should be familiar with and use regularly. Despite being widely available, some applications are more intuitive and integrated with each other. Cooperation between your tools allows you to spend less time setting the same parameters across multiple sites, and more time searching for stocks.

Stock Screeners allow investors to search the entire market for a set of criteria to see which stocks are the best fit for their strategy. This is particularly useful for short-term traders where the list of stocks that meet their criteria change often. To do this, the investor may use the screener to seek stocks that have recently made big moves, or perhaps stocks that have recently traded lower and are set for a rebound.

One way to get started using a screener is to use a set of criteria defined by someone else. These screens, such as  High-Volume Tech Stocks or stocks On The Rebound. These pre-set filters will let you see which criteria other people have found useful to try to find a certain kind of stock. As you learn how changes to the parameters change your screen, start experimenting with factors that you think could further extract value from those results.

Another great way to screen stocks with a Sector and Industry Analysis tool. This will help you zero-in on certain sectors and industries that have characteristics you may be looking for. These tools can screen stocks by a lot of the same information that a stock screener would use, but in a format that can be easier to use for investors that have an area of the market in mind.

While using screeners, a tool to compare a few stocks in greater detail can help you make a final decision. From any of the screeners found on InvestorsObserver, you can add up to four stocks of your choice to see a side-by-side comparison. Unlike the screener which crams as much information as possible into a comprehensive screen, the comparison tool lays out all of the information about each stock into a simple, easy-to-compare way.

Portfolio trackers are another tool that simplifies investing. These take that time-saving integration to the next-level by allowing you to monitor your portfolio in the same place and in the same way you used to pick the stocks in the first place. This can show you your portfolio’s leaders and laggards, each stock's performances, and a breakdown of your portfolio by sector and industry, among other things. Being able to review and analyze your portfolio, while having access to screeners and comparison tools helps investors to keep their portfolios up-to-date with market sentiment.

Watchlists further you track your investments by allowing them to store stocks that they are keeping an eye on in an organized fashion. These tools are best used when they are re-assessed and trimmed frequently. This is important because otherwise many of the stocks that enter the watchlist will eventually become irrelevant to the investor, making it a less powerful, and more complicated, tool than it is meant to be.

Using these tools along with staying up to date on the recent news and trends is a great way to make sure that you are consistently making educated and quick (if needed) decisions on the stocks that do and do not make it into your portfolio. Using an integrated system is important for investors because it allows them to reallocate the time that they spend ensuring consistency across applications to creating more educated positions on stocks.

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