Investing in the stock market can be an intimidating experience. Market conditions are constantly changing, and for some individuals new to the stock market, keeping track of everything, while ensuring actionable results can become a daunting task while building a stable and well-performing investment portfolio.
Every few months, thousands of publicly traded companies release financial reports. This is an event that allows current shareholders and potential investors to get a glimpse into the financial well-being of a company.
Now, the stock market adds even more complications to an already complex scenario; not every company that trades publicly uses the same type of financial calendar. Some may have unique calendars, while others use a more traditional approach that follows three months, often called quarters.
During each quarter, companies will make announcements on their stock performance and any new developments they have implemented during the last trailing three-month period.
Seems relatively easy to understand. This isn’t always the case, and some companies will have different financial calendars than banks or government institutions. What’s more, these events or financial reports can impact individual portfolios and a company’s stock performance.
Understanding the complexities of financial calendars can leave any first-time investor feeling overwhelmed. Luckily, there are some things you can do to get a better grip that will allow you to understand how to use a calendar for investing, plan accordingly, and make necessary adjustments to your investment strategy.
Here’s how to make the most of your calendar to make more intelligent investment decisions.
Keeping track of investments
Let’s say, for instance, you’ve purchased shares in a technology company for $100 and have set it up to deduct this amount from your account each month on a specific date; a digital calendar will help to inform you about upcoming payments.
This not only ensures that you are aware of the money being deducted from your account, but it will also notify you that you will need to have that specific amount available in your account to avoid overdraft penalties or fees.
At the very least, an investor needs to keep track of the companies they are investing in or will potentially invest in. Doing so allows investors to ensure their portfolio remains balanced and doesn’t slant toward a specific industry or sector.
This is what investors and professionals call “diversification,” which ensures they spread their money or cash among several different investment vehicles, which ultimately helps to lower their risk exposure.
Now, with this in mind, investors need to keep track of the investments they are making. A suggestion would be to use a digital calendar that helps to keep track of when a specific security was purchased and in which industry or sector this may belong.
Things can quickly become complicated and even more confusing if investors lose track of where their money is going or if they are blindly investing in stocks or companies they know little about.
Staying informed about important dates and events for investing
As already mentioned, many companies that trade publicly will follow different financial calendars for which they mark important dates and events. Companies may use these dates to release important information, such as financial data, stock performance, growth and performance, and any forward-looking plans.
These dates are crucial to any investors, and it should be your responsibility to keep track of them to know precisely when a company will release its financial data. Remember that these events can often be referred to as an “earnings call” or “quarterly reporting.”
Typically companies will publish these dates well in advance on their website or even inform shareholders several days before. Generally, some companies will already have a financial calendar published, allowing investors to keep track of when an important event will occur throughout the quarter or year.
Marking these important dates on your calendar will allow you to be more informed about any possible changes that may take place before or after the event. This could be a smart way to track the performance of certain stocks, allowing you to make the necessary adjustments that might positively impact your portfolio.
Marking these dates every quarter and setting reminders will help you be aware of any new developments that will unfold in the days leading up to the event or what might occur right after.
Investors leverage this opportunity to make strategic changes to their portfolio, as some companies may witness a decrease in profits and revenues, which could lead to a more significant sell-off of the company’s stocks and drive down prices. It’s wise to remain informed about these dates, when they will occur, and how to schedule them into your calendar.
Creating notifications for more significant events in the market
Not every company will follow the same public financial calendar. However, in some instances, you might come across a range of different companies from the same industry, all making their financial reports public within a single week.
This is often referred to as reporting season and can occur at different intervals depending on which type of stock market you are trading on and the variety of industries you invest in.
These earnings seasons are a big deal for investors because, usually, during this time, a lot of them will either increase their stake in a company or perhaps decrease their holdings based on both the company’s financial performance and the broader industry.
For example, earlier in the year, several big-tech companies, such as Amazon, Google parent company, Alphabet, Meta, Microsoft, and Apple, among many others, announced their earnings within one week.
This follows several months of these big-tech giants making significant job cuts to stabilize their bottom-line performance. This was a big week for many investors, as this would give them a clear indication of whether or not the technology industry has improved on the back of slowing economic conditions and whether or not these companies have improved their financial conditions.
With this information, you can easily set up an automated financial calendar, in which you can give yourself enough time to attend each earnings call event and read through the financial reports of companies. This is especially important at a time when multiple companies release financial data.
Creating a watchlist for potential investing activity
Let’s say you have been following specific security for quite some time, which allows you to keep track of daily or weekly fluctuations. Doing so lets you measure whether the investment will be worth your time and money.
Using a digital calendar that’s synced with your mobile phone or computer and connected to the investment platform you are using to access the market, you will get immediate notifications if a specific security is trending upwards or moving downwards.
This isn’t anything new, and some investors set up their trading platforms to send them immediate price updates throughout the day.
With a digital calendar, it’s possible to keep track of more than just one security without having your phone being blown up by dozens if not hundreds, of watchlist notifications every day.
Investors can sync specific securities on their calendars. This allows them to follow and track the bitcoin price today, while being informed about a specific stock that is trading below value and is poised for growth.
Investors need to think of their investment calendars as their day-to-day schedules, whereby they remain informed on the go about any new events that are taking place or might be happening in the near future.
Setting financial goals both now and into the future
A digital calendar can help improve your investment decisions and the money you are investing by establishing financial goals.
These goals will look different for every person. However, it’s essential to know what you are working towards and how your decisions influence when you may achieve these financial goals.
Using an online calendar allows you to keep better track of your progress. Some days, weeks, and months, you might find yourself gaining less on the stock market; other times, the opposite might happen again.
Setting forward-looking goals makes it easier to know what you are working towards, but it can also help you keep better track of your finances and how you invest your money.
Some months, you may find yourself investing more in stocks, while other times, you may buy more exchange-traded funds (ETFs) or different types of commodities where prices continuously fluctuate.
All-in-all, using a calendar to track your financial goals is one of the best ways to ensure you stay on the right route to reaching these milestones and that you can make the necessary changes whenever you might have been derailed.
There are many different benefits to why a calendar can be important when you are an active investor. Market conditions are constantly changing, and keeping track of everything while ensuring a balanced portfolio can be daunting.
No matter the situation, ensuring you have a calendar that works with your investment strategy will keep you informed and up-to-date about any critical events that unfold over the financial year. The more you know, the better of an investor you can become.
Featured Image Credit: Photo by iam hogir; Pexels; Thank you!
The post Five Ways to Use Your Calendar to Make More Informed Investments appeared first on Calendar.