Your performance on the stock market is dependent on a broad set of variables. Ranging from the timing to the industries you pick and the diversification you adhere to. At all times, it is of relevance to leverage a portfolio tracker. This helps you to keep an up-to-date overview of all your assets that are working for you on the stock market. In this article, we will look at different ways of investing and how a tracker can be helpful in those scenarios. Ranging from a value investor to active trading, there is a case for every type of investor.
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A tracker for the value investor
As a value investor, you are typically looking for stocks that are undervalued based on their current stock price. Using financial indicators, you can determine if a firm has a higher intrinsic value than the current stock price reflects. To conduct this analysis, you need accurate and up-to-date information. This is where a tracker comes in handy. For example, the Delta tracker allows you to view an in-depth analysis of the stock to determine its value. Value investors tend to hold a stock for a longer period, making tracking less relevant. The application can be configured in such a way that you will receive notifications only with major fluctuations in the prices of your holdings.
Active day trading
This type of investor is in desperate need of a strong tracker that allows them to be continuously updated. Not only do you need to have analysis, but you also need to have the latest news, trends, and the ability to trade fast. This also means you want to have an up-to-date view of your assets through a direct link from your brokers. A tracker can facilitate this: retrieving your holdings through APIs and showing them in a central location. Next to that, you can analyze where you have the best transaction fees. Transaction costs can vary among exchanges and currencies, often with over 10% in differences among brokers.
Passive investing
The least attractive scenario to make use of a tracker, you might expect. Passive investing refers to investors that are investing in indexes through Exchange Traded Funds (ETFs). The ETFs are tracking the indexes and try to mimic the ratios that are present in the index. For example, many ETFs track the S&P500, such as:
- Vanguard S&P 500 ETF
- SPDR Portfolio S&P 500 ETF
- iShares Core S&P 500 ETF
- SPDR S&P 500 ETF
When analyzing their returns, you will notice that there are slight differences, based on the ratios they are using. When you use a tracker, you can better analyze these differences to make your investment decision. Next to that, a tracker such as Delta can help you get tailored push notifications. In case of major news that is released covering a large part of the stock market, you will be updated instantaneously.