InvestorQ : How important is it to monitor our positions in the market?
Nisha Chandani made post

How important is it to monitor our positions in the market?

Answer
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Ria Roy answered.
2 years ago


In fact, as important as investing is monitoring your investments! Most traders and investors tend to underestimate the importance of monitoring open positions. As a prudent trader and investor, it is not just enough to create a fresh position. It is a lot more important to monitor your positions. Your trading account typically provides you with an in-built portfolio tracker that can help you through this process and you can also set triggers. So what exactly do you monitor? You need to monitor your limits, your MTM losses, your concentration risk, your return on investments etc.
Remember, monitoring your positions is extremely critical irrespective of whether you are a short-term trader or whether you are a long-term investor. You need to be fleet-footed to latch on to opportunities and also quick to think with your feet when things are not working in your favour. Then there are a plethora of global and domestic macro factors that are entirely outside your control. The best you can do is to understand the implications and tweak your holdings accordingly. That is where a good broker/advisor can really be of help. After all, as we began by saying, that is what pedigree is all about!