10 Minute Guide to Investing in Stocks Chapter 13

Lesson 14. How to Check Your Investments. In this lesson you will learn to reevaluate your portfolio periodically using the information listed in the daily stock tables that time has provided. By now you have made your investment, and you are therefore officially a member of the investment community. | l@ve RuBoard PREVIOUS NEXT k Lesson 14. How to Check Your Investments In this lesson you will learn to reevaluate your portfolio periodically using the information listed in the daily stock tables that time has provided. l@ve RuBoard 4 PREVIOUS NEXT k l@ve RuBoard PREVIOUS NEXT Congratulations By now you have made your investment and you are therefore officially a member of the investment community. Your responsibilities as an investor are not over yet however. Maintenance on your investment is carried out in two ways Reevaluating your portfolio Checking your stock s performance The next two sections will show you exactly how to carry out this maintenance. l@ve RuBoard PREVIOUS NEXT l@ve RuBoard PREVIOUS NEXT Reevaluating Your Portfolio Reevaluating your portfolio means periodically recalculating your investment selections. Use the ever-increasing amount of information about your stocks to ensure that your original investment decision is still applicable in spite of changes in the market such as a downturn in the economy or other circumstances such as a change in your income and investable income. Plain English Reevaluating your portfolio means double-checking your investments at regular intervals. The stock market changes substantially from day to day so it is very possible that as time passes your investment may no longer be the optimal place to put your money. Whichever system you used initially to select your stock you should use it again to ensure that the results are consistent enough to maintain your faith in the investment. In addition since you now have tangible information regarding your stock s performance you might want to consider using different methods to evaluate it. The danger for most novice investors when they reevaluate their portfolios is that they place far too much importance on minor setbacks and changes. Reevaluating your portfolio is more about looking for major loopholes that you overlooked initially or evaluating unforeseen changes that

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