The ability to be able to effectively follow the performance of shares provides an advantageous tool to take advantage of the economic value and conditions of a company. The daily trend of the share price can turn profits into losses, and vice versa, when news comes out. Following price movements mitigates these risks and increases the potential profits of a given stock.
To be able to track stock value, you'll need to know what each category represents and how it affects that stock. The basic tools to follow the trend of the shares are provided by the websites that provide the values on a daily basis. In any case, if at a certain time or in the place where you are you do not have access to the network, you can use the financial section of any newspaper that provides the price of the previous day. In this article, you will learn how to monitor the performance of stocks.
Steps
Step 1. Identify the symbol (or ticker) of the stock you want to follow
The symbol is a combination of 1 to 5 letters, often it is an abbreviation or a reference to the name of the company or to one of its products
Step 2. Find the market in which the stock is traded
- The most important American markets are the New York Stock Exchange (NYSE), the NASDAQ, and the American Stock Exchange (AMEX). Other important international markets are the London Stock Exchange (LSE) and the Tokio Stock Exchange (TSE).
- Find information on the market that deals with your stock by visiting the specific page of the company's website.
Step 3. Use the symbol to get information about the stock
- Enter the symbol in the search field of a financial services website, or use the stock search tools provided by major browsers and search engines.
- To find stock directions in a newspaper, look for the symbol in the appropriate market section on the newspaper's financial page.
Step 4. Interpret the action's listed information
- The highs, lows and closing prices indicate how the stock has gone over the last period. These are the highs, lows and latest prices that the stock has hit in the last period or in the current one.
- The highs and lows of the last 52 weeks indicate the volatility of the stock. The broader the price movement, the greater the opportunity for profit or risk of loss for each share you own. Conversely, a small fluctuation indicates a more cautious investment.
- The dividend column indicates how much you may be paid by the company by owning a stock on a specific date. The dividend can be increased, decreased or not recognized depending on the company's performance.
- The Price-to-Earnings Ratio (PE) is the ratio of the current share price to the expected earnings for each share. A low value may indicate a stock that is undervalued by the market.
- Volume is simply the number of shares traded each day. An unusual trend in excess of volumes compared to the daily average may indicate that the stock is growing or that it is expected to collapse.
- The net change (or simply "change") represents the gain or loss of the stock on a given day. It is calculated by subtracting the closing price of the previous session from the current price or the closing price of the following session.
Step 5. Open an online wallet to easily track stocks over time
- Many financial services sites and search engines offer tools to open one without paying.
- In most cases, to open an online securities portfolio all you have to do is create an account, log in, click on the portfolio or financial section and enter the symbol of the securities you are following.
- Internet sites like Mint.com and Wikinvest.com allow you to check your portfolio for free. They also offer iPhone apps, which allow monitoring at all times.
