Investing is a tricky task at the best of times. No stock market investment is ever going to deliver guaranteed returns, and other investments often take a significant amount of time to realise their value. With that in mind, many people are put off the world of investment altogether – or choose only to use less risky investment vehicles. But there are some ways in which investors can become more informed about the investment market and maybe even reduce their risks along the way. Here are some top tools used by many successful investors when it comes to building a portfolio.
Price analysis tools
In the trading and investment worlds, there are disagreements between investors as to the best ways of monitoring the markets. For some traders, what’s known as a technical analysis approach is best. That method suggests looking just at price data, and attempting to extract trends from this. The theory here is simple: technical analysts often claim that all relevant market-moving information is best represented by the trading decisions of the investors who stand to gain or lose, so when these are aggregated, they provide the clearest insights. If you decide to go for this route, it could be useful to invest in some high-quality price monitoring software designed specifically for your asset classes.
But other traders take a different view. For fundamental analysts, the wider economic scene is more important, with specific economic events being separated out from price decisions and used when making decisions, because they have the potential to move the markets so much. These events can vary, again often based on asset classes. Some foreign exchange traders use central bank interest rate rises, for example, while fundamental analysts working across a whole variety of instruments often choose to take into account political developments such as elections. These events are aggregated into handy economic calendars. There are several versions of the calendars available online, and they’re usually free to use.
Broker comparison tools
No matter what sort of analysis you choose to use as an investor, you’ll need to have a broker in place. And if you’re paying that broker in the form of annual fees, spread fees or something else, you’ll also need to make sure that you’re getting the best possible deal. That’s where a broker comparison comes in, as it allows you to filter out those which don’t suit your needs. Stock broker comparisons from Learn CFDs cover important points including commissions and ease of use, and they’re easily accessible online too. Remember that by getting it clear in your mind what particular services you require from your broker the comparison process will be much easier.
If you’re a trader looking to surge ahead in the investment world there’s a clear advantage to using the online tools shared here. And there’s a tool for all sorts of scenarios. From economic calendars to broker comparison tools, there’ll be something for you no matter what your ultimate investment goals or your trading outlook might be.