Under Zerodha's Nudge feature, which was launched last year, investors are warned when they're about to break basic trading rules such as trading in risky illiquid instruments and penny stocks
Stockbroker Zerodha has announced that it has added a new option to its ‘Nudge’ feature on Console — portfolio and trade tagging, which can be used as a trading journal and to track investing goals.
Console is the backoffice platform for a Zerodha account and it's the central dashboard where investors can place withdrawal requests, keep track of their credits and debits, view as well as keep track of portfolio of positions, stocks and mutual funds.
Under the Nudge feature, which was launched last year, investors are warned when they're about to break basic trading rules such as trading in risky illiquid instruments and penny stocks.
“A smart way to get better at trading and investing is to learn from what is working for you in your favour and what’s not. Make a note of the reasons for taking a particular trade or investment. It could be based on any factor – gut-based, indicator-based, advisor-based, PE-based etc. Review these notes every once in a while, to figure which ones are generating profits and which losses," Nithin Kamath, CEO, Zerodha said in a note.
According to the broking house, investors can tag the exact reason for taking a trade in the profit & loss (P&L) statement or on the holdings or positions page, acting as your trading journal that will also display your performance.
Investors can follow these steps to keep a trading journal on Console platform with the ‘Tags’ feature.
Click on the context menu next to any security on the P&L and select view breakdown/tags.
In the P&L breakdown window, click on create and apply a tag to all trades.
Enter the tag’s name and add a description. The tag name has a 15-character restriction, but investors can elaborate on the tag in the description box.
Investors can apply this tag to all the trades for this instrument in the breakdown (different trades that led to the P&L) or separate tags for each breakdown by clicking on edit tags.
Once tagged, investors can use the filter by tags in the P&L to view the profitability of your tags. They can also track best and worst-performing tags on the Tag manager.
According to Zerodha, while tags can be used as a trading journal, investors can also use them to track investment goals. They can tag holdings to goals such as retirement, kids' education, vacation, and more.
To create goals, follow these steps after going to the holdings page on Console.
Click on the context menu next to the desired stock and select view breakdown/tags.
Similar to tags in P&L, you can tag either the entire quantity of a particular security to a specific tag or tag the breakdown (buy trades that led to the holding).
Once tagged, investors can start filtering their portfolio by tags on the holding page to track goals.
On the tag analytics page, investors can get an overview of their best and worst-performing tags and a list of all the tags they created.
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