Trading stocks went through several revolutions in the past decades. Access to the stock markets has been increased through telecommunications, allowing people to trade the market through brokers. Next, the internet allowed people to directly trade on the market. This resulted in lower transaction fees and opened up a new era of retail investing. However, professional traders were often better equipped. A good example is the Bloomberg terminal. This is a device that has access to all financial markets and provides news and independent research from over 1500 sources.
The invention of the stock tracker
That is where the stock tracker comes in. A challenger to expensive financial market equipment, these are applications that can be hosted on any smartphone. They allow traders to reflect their complete portfolio of assets into a single overview. A good example is the Delta stock tracker, which has access to stocks, ETFs, indices, bonds, and even cryptocurrencies. This brings retail traders on par with professionals to create an equal playing field. Do note that stock trackers are meant to give insights, they’re not used to buy stocks.
Be aware of significant market changes
Tracking stocks can be cumbersome: it allows you to have real-time insight into your portfolio day and night. This can result in day trading or in the dilemma known as ‘best price trading’ (i.e., waiting for the best price to come). Both these elements can hurt your overall performance. Therefore, it helps if you can keep your phone in your pocket and trade when most relevant. For example, the above-mentioned Delta stock tracker uses algorithms to provide you with notifications on important events. Major stock gain? An important report that came out about the industry of your stocks? The stock tracker will notify you.
Going all-in on automation
Just like the market, your portfolio is ever-evolving. For example, companies pay out dividends to shareholders based on their performance and dividend strategy. When you have a smart stock tracker in your possession, these dividends are automatically calculated and added to the value of your portfolio. With this, you always have an accurate view of your portfolio, including dividend transactions. The same holds for stock splits (e.g., GSK) and coin splits (e.g., BTC and BCH).
Know how people trade through analytics
News is only one piece of the pie when it comes to trading. Where do people purchase stocks? Did you make a good trade on the stock? Stock trackers are currently implementing these functionalities into their technology. Coming back to the example of the Delta.app, they have already implemented this for cryptocurrencies. You can get insights into:
●Exchanges used by traders.
●Performance against other products (e.g., major indices).
●Fee breakdown when transacting.
●Analytics on historical data.
This can help guide your decision-making, as well as provide feedback on the trades you have made. This can give you feedback on the trade that goes beyond ‘feeling’. For example, trade is considered good when you sell your stock and the price decreases further.