If you invest, you should know that you can’t just “set it and forget it” like you can with some things in life. The market changes regularly and things can happen overnight, but it’s important that you always know where you stand. That’s why it helps to value shares regularly and make sure that you know what you have.
This could also help you decide that it’s time to make a move if your shares aren’t performing, or if there’s an expected dip in the market and you want to cash out before you lose value. There are so many benefits that come from knowing the value of your shares. However, there are also some reasons that you need to keep up on your shares’ value to make smart financial decisions.
You should regularly check on your share values because:
- The market can change drastically in a short period. What was once valuable may not be anymore.
- You could have a stock that’s suddenly grown and worth selling, which could be useful to your portfolio or even to pad your pocket with a little extra spending cash.
- The slightest change in the economy can affect share values.
- You can track the growth of the stocks and shares that you have by keeping tabs on them over time.
- You will know when it is a good time to sell or buy more stock if you are paying attention.
- If you ignore them, you could end up losing a lot of money in a serious market dive or company loss.
Of course, there is a caveat here. You should value shares regularly—that doesn’t mean you should check them every day, or multiple times a day. Sitting on your stocks can create a lot of anxiety and that emotion can influence your decisions if you’re not careful.
Instead, you should check on your portfolio regularly, once every week or two perhaps, or have a financial planner do it for you. These days it’s very easy to value shares online too. That way, you can keep tabs on what’s happening without making rash decisions or emotional choices about your investing.
The post Why You Should Regularly Value Your Shares first appeared on Mind My Business.