Stock Portfolio Management

Written by Michael Federico
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It is amazing how quickly things change on the stock market. Anyone who has seen images from the trading floors of one of the major exchanges has some appreciation for how fast decisions have to be made. A person can make or lose large sums of money in a matter of seconds, so it is important that he know exactly what is going on before he makes a trade.

Most experienced investors have a plan when they purchase stocks or other assets. They have both high and low prices at which they will sell. They will hold out as long as they can for a stock to reach a certain level, but if things go south, they won't necessarily go down with the ship. This strategy doesn't always work, of course, but it can help to limit risk. In order to make these types of decisions, a person has to be fully aware of his stock portfolio's performance.

Online Portfolio Managers

When a person invests and trades online, he is taking on many of the responsibilities that would normally be handled by a financial advisor, a broker, or a fund manager. He has to research companies, keep track of a stock's performance, monitor market trends, and do his best to predict what certain stocks are going to do in the future. Handling all of this can be extremely difficult, and because of the difficulty many people stay away from online trading.

The best trading services on the Internet give their members access to software that can, in essence, function as a portfolio manager. Of course, it cannot make decisions for an investor. However, it can be set up to track all of the stocks in a portfolio. It can chart recent activity and performance history. Some software can isolate trends and notify investors about changes in stocks they have had their eyes on.


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