How to Monitor Stocks

Monitoring the rising and falling prices of stocks is an essential part of being a successful investor or stock trader.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Palm Handheld Organizers
• Calculators
• Modems
• Internet Service Providers
• Notebooks
• Writing Pens
• Computers
• Online Trading Sites
• Personal Financial Software
• Spreadsheet Softwares

1. Monitor your stocks' prices on a daily basis, noting whether prices are heading up, down or fluctuating. Find your stocks in the newspaper or on the Internet.
2. Track performance by reading monthly statements from your broker. Use the Internet for up-to-the-minute tracking when needed. (You can create a portfolio of stocks on your personalized home page.)
3. Closely monitor each stock you are interested in (not just those you own, but those you might buy). Monitoring can help you make an immediate decision on whether to buy, sell or hold.
4. Add to stocks you like or those that are growing nicely when you have additional income to invest. Remember to diversify your investments.
5. Contact your broker by phone or the Internet to buy or sell a stock.
6. Specify the action you want to take and at what price you want to take it. Your broker will do the rest and provide you with a confirmation of your transaction when your order is executed.

Tips & Warnings

• The stock market can be extremely volatile. It is advisable to keep a three-year horizon in mind. Day trading can be profitable, but requires sophistication and constant attention.
• Read "The Wall Street Journal" or "Barrons" and read or watch any daily news that informs you about your stocks and events that affect the stock market.
• A stock's performance should be compared with others' in its group and evaluated over time - don't automatically sell your stock if you notice that it is declining in price.