Are you still one of those investors who do not review the market trends and their stock market holdings regularly? Here are 3 good reasons to review your stock market investments every month.

As a long term investor, it is not advisable to review and check your stock portfolio daily. But at Stock Trend Investing we recommend to have every month a close look at the market and your investments. Here is why:

1) You do not want to miss a new emerging trend

When a new long-term trend emerges in one of the markets you want to be in the train. It is so easy to have a wait-and-see attitude. There is always uncertainty if the trend materializes and really continues. But this is uncertainty is only gone when you can look back afterwards. However, then it is too late to jump on the trend and ride it to your fortune.

You capitalize most on stock market trends when you step in early. To be able to do this, you need a mechanism that helps you to review the situation regularly. Your mechanism or approach must be sustainable. It should not take too much effort but it shall be effective as well.

You do not want to miss a strong trend in a certain asset category or market. If the markets in the US are flat but there is strong growth in Gold or in Asia, you cut yourself short if you miss those trends.

Therefore, you want to review the developments in different markets on a regular basis in a way that is sustainable for you. It is of no use to do this once or twice and then stop. You want to check regularly if and in which markets new long-term trends are emerging. At Stock Trend Investing we do this review every month. It is frequent enough and with the tools that we have developed it doesn’t require a lot of effort.

You can also use our free money management tool to make decisions on how much you want to invest in each of the different markets when long-term trends emerge and continue.

2) You do not want to fall asleep in the trend-train and miss your station

All long term trends end. You’ll never know before the trend stops when it will stop and turn. Nobody can predict the future. Therefore you need to look out of the window on a regular basis to check the landscape (market) and see if you have passed the end of your journey.

If so, you want to pull the emergency break and get out of the train immediately. In other words, when you have invested your savings in certain index or mutual funds, you want to review on a regular basis if the trend has come to an end and if you need to sell your funds and get your cash.

As above, you want a routine that is frequent enough but that does not require too much effort. We review our holdings and the market trends on which we are capitalizing on a monthly basis to see if we step out of the market.

3) You want to correct quickly if you are wrong

As said before, nobody can predict the future. And therefore, nobody will be always right. And it is actually no problem to be sometimes wrong… as long as you correct quickly.

Therefore you want to review on a regular basis if your trend assumptions before turned out correct. Sometimes you expect a trend to emerge and things change and the trend does not emerge. In those situations, you better just accept the situation, take your loss and look for the next trend that is likely to emerge. Just be more often right than wrong and make much bigger profits when you are right than losses when your assumptions did not work out, and you’ll be more than alright.

Please do yourself a favor and review the market trends and your holdings of funds on a monthly basis.

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