Working with Stock Portfolio Software
(includes video)

The Stock Research Pro software application provides an all-encompassing environment for finding and evaluating stocks that might present a good investment opportunity and then tracking stock purchases for performance. The stock portfolio module within the software can also be used to create “What-if” stock investment scenarios so that you may test your strategies before making any actual investments.

Building Your Stock Portfolio

The first step for any new investor is to define your investment objectives. Once your objectives are clearly defined, you can start to build a stock portfolio that is consistent with those goals. In general, investment objectives fall into three categories:

Capital appreciation- These are investors with a long-term time horizon who seek primarily to increase the value of their portfolio. Investors with this primary goal will seek to invest in stocks that will rise in value due to earnings growth growth and other fundamental metrics. However, stocks that offer this high-growth potential do tend have higher risk than investments that offer greater preservation of capital and income generation. Small-cap stocks (market capitalization of $300 million - $2 billion) often fall into this category of stock investment.

Capital Preservation- The primary goal for these investors is to protect the value of their portfolio. Often, these are investors that are approaching retirement age and will need to access to their cash in the not-too-distant future. Large-cap (market capitalization of more than $10 billion) or “blue chip” stocks may fall into this category as these are mature companies that, while offering limited growth, do offer relative price stability and (usually) income through dividends.

Balanced- In a balanced approach, the idea is to seek capital appreciation while limiting risk. Mid-cap stocks (market capitalization of $2 billion - $10 billion) can fall into this category as they can offer the potential for significant capital appreciation along with the proven management and products of a large-cap company.

You should structure and manage your portfolio with your timeframe and risk-tolerance in mind.

Click here to launch the stock portfolio software introduction video

Working with Stock Portfolio Software

Stock portfolio software is used to track your stock positions. That is, your date of purchase, the number of share and your per share price. You may also factor in any transaction fees to calculate your true cost basis.

Analyzing your portfolio on a regular basis (at least quarterly) will keep you aware of your gains or losses to date- both in hard dollars and on a percentage basis- and help you determine whether your stock holdings are still in agreement with your objectives.

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The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax advisor.

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