It’s research, not luck, that makes a successful investor. To make the right decisions, you need the proper research tools. Thanks to modern advances in technology, the general population now has access to the same resources as the people on Wall Street; they simply need to learn what to look for. Below is a list of features an investment tool should have to set its investors on the path to success.
- Unlimited Access
To the untrained eye, investment tools may look like they’d all provide the same features, but the access they provide their customers can vary greatly. Some allow for completely free access to all of their features, while others charge expensive fees for their services. For example, the growing cryptocurrency market still has limited coverage and access, so you should use an investment tool specializing in this area if this is of interest.
- Customizable, Interactive Tools
Every investor has their own strategies they implement when curating their portfolio, so it wouldn’t make sense to use a cookie-cutter research tool, which expects everyone to act the same. A useful research tool should allow its users to customize the information they have access to. That is the only way an investor will be able to execute their strategy correctly.
- A Wide Range of Stock Screener Criteria Filters
Stock screeners are a crucial element in the trading game. They allow investors to sift through otherwise impossible amounts of data by setting personally defined criteria. This alerts them to stocks that fit their trading strategies, such as target prices or chart patterns. One thing to keep in mind is that these screens do not take the place of thorough research. They only provide a quick starting point.
- “Top-Rated” Lists
Not everyone has time in their day to scour through the ever-growing number of stocks on the market. That is why having a curated list of top-rated stocks is a valuable resource any useful investment tool should provide its users. Not only does it give an investor a starting point in their search for worthwhile investments, but it will also strengthen their confidence during the decision making process.
- Industry Rankings or Comparisons
To further breakdown the vast amounts of information to more manageable sizes, it also helps to have rankings and comparisons of companies within a specific industry. Just because a company does not make the “top-rated” lists does not mean it isn’t a worthy investment. For example, due to the growing legalization of cannabis, many small companies are poised to make serious profits. They may not be contenders against major corporations right now, but they still deserve a spot in any adequately diversified portfolio.
- A Position Size Calculator
If an investor is not correctly accounting for the inherent risk in their trades, they set themselves up for disaster. Investment research tools like Stansberry Investor can help researchers quantify how risky a particular trade is with respect to the rest of their portfolio. But instead of abandoning the trade due to the high risk, a position size calculator can help an investor adjust it to a more manageable amount.
- Relevant News Updates and Informative Newsletters
The last thing a busy investor wants is to be spammed with irrelevant information that has nothing to do with their investment strategy. However, an intuitive investment site can improve its users’ performance by keeping them up to date on the status of their current investments. Informing investors of potentially lucrative opportunities they would otherwise not be aware of is another essential service that should be sought after.
- Years of Historical Data
Past performance is not always a reliable indicator of future performance, but the more research conducted, the more confident you’ll be in decision making. This applies not only to individual stocks but also to the history of the people making recommendations. If an investment research tool is providing you with limited information for a stock, or little information from their track record, then it may be best to search elsewhere for advice.
The Right Investment Research Tool for You
Investing is a never-ending learning process that can be challenging, stressful, and extremely rewarding. The right investment research tools will make that process a whole lot more successful than merely treating the stock market like a trip to the casino. By following the tips provided above, any hopeful investor will can make their money work for them.