Portfolio Management Software

  • By Jeff Cartridge

  • June 15, 2015
  • 2:43 pm BST

Investment Tracking Software

Portfolio management software has come a long way in the last 4-5 years. Previously, traders would be lucky to record their trading or investments on anything let alone use professional portfolio management software. For this reason, tax time was a huge burden and let’s not forget that due to poor record keeping your accountant would charge like a wounded wall street bull to tidy it all up.

Whilst portfolio management is still in the back of most traders and investors minds, products like KeepGoodRecords.com (Advanced Portfolio Management) have certainly made the process a lot sexier. Further to this, tax time is an absolute joy compared to trying to find all your contract notes from your stock broker.

So what exactly is porfolio management software?

Portfolio management software allows you to track, monitor and control all your various trades, trading systems or investments in one easy to use software package. The best portfolio management software also allows you to track and monitor several trading instruments through the one program, making reporting a breeze.

Why is portfolio management software important and do I really need it?

Have you ever hesitated on pulling the trigger when your entry alert is signalled? Ever been fearful of losing your money when trading the markets?

The major reason you migh be fearful of taking the next trade and procrastinate when opportunity arises is because you haven’t taken the time to quantify your edge in the markets. Portfolio management software helps you identify your trading system(s) strengths and weaknesses and then work on making the weaknesses better.

This isn’t some trading secret that only a select few elite traders have access to. This is a tool so obvious that it has been sitting in front of you all this time but you have probably never known the key reasons as to why this is such a critical tool for your long term trading success.

Record keeping, portfolio management and knowing the ‘numbers’ of your trading business are the real ‘secrets’ to:

  • Trading stocks, CFDs, Forex and Options confidently
  • Removing fear when placing trades
  • Minimising drawdowns
  • Smoothing out your equity curve
  • Only ever trading positive expectancy systems
  • Identifying appropriate pyramiding techniques based on your systems R Multiples
  • Position sizing for maximum advantage

Have a read of what Con had to say about the importance of smart record keeping and the benefits of portfolio management software.

“For our money, this product is head and shoulders above all Australian & International products that we have tested and utilized.”

In addition we discovered that the most profitable trades for the fund where invariably greater than 120 days in duration, based on the trading strategy that we engaged, with and average trade risk of $24,209.23 plus an average risk reward 1.54 and an average Win$ return of 75.23%.”

Con – Zeus Enterprises Superannuation Fund – Superannuation Administrator

Why is portfolio management important?

Can’t I just look at the overall profit I have made in my trading account?

Well you could, but it would only tell you if you are profitable or not. There are so many other important statistics that can be gathered about your trading history and countless lessons to be learnt from those numbers.

Do you think prior to taking over a large multi-national company that Warren Buffet goes and meets all the staff to get a good feel for the people running the show? Unlikely.

Warren Buffet needs to know the ‘Numbers’

What is the first thing Warren Buffet looks at before deciding to purchase or takeover a company? That’s right…the business numbers. Considering he is the richest investor in the world, it might pay dividends to follow Mr Buffet in regards to knowing the numbers of your trading business.

Another example is the casino. Have you ever noticed that there is a pit boss looking over every single table at the casino? They are constantly running reports and identifying the critical numbers and if the casino is losing they replace the dealer quick smart. Then continue to monitor the numbers. It’s a constant process that enables them to keep on top of the business of winning.

“This program was leaps and bounds ahead of all the programs I tested.
… This program has all the normal record keeping abilities that will save you truckloads of time, but where it really comes into its own is with its advanced reporting and statistical functions.”

Lawson H Terry – Private Speculator

OK, so what numbers are important for your trading and why?

Let’s take a look at a couple of important numbers. Don’t get too concerned if you are a little shy with your maths. You can enter all these formula’s into an excel spreadsheet for free.
If however you are looking for complete portfolio management software then your number 1 option is KeepGoodRecords.com – free 30 day demo available here.

Some basic portfolio management statistics:

  • Percentage wins & percentage losers
  • Average size of win & Average size of losers
  • R Multiples of your trading system
  • The Expectancy of your trading system
  • Do you have a quantifiable edge in your trading system?
  • Risk:Reward ratio’s

Many traders continue to struggle with their trading year after year and yet many never take the time to learn the critical numbers that could greatly benefit their trading methods.
Even more surprising is the fact that most traders/investors aren’t even aware of what a positive expectancy system is and have never heard of the term R Multiples. These are the building blocks to understanding and being clear on whether or not you have an edge in the markets.

If you don’t have an edge in the markets, then how can you expect to consistently profit over time?

Why not take the free 30 day trial of Australia’s premier portfolio management software and see for yourself the difference it will make to your trading results.

Trade Smart