Analyzing Investments and Recording Transactions

Investment Analysis Form

The more closely you examine your decision making processes, the better able you will be to improve them. One great way is to record your thoughts, predictions and rationale, and later revisit them to see if and why you were wrong, so that you won't make the same mistake twice.

You may want to consider filling out the form below when you're thinking about buying or selling. It helps clarify the decision, it helps with record keeping (taxes, portfolio tracking, etc), and it helps with learning. You may want to change it to suit your own needs, or come up with a totally different one.
Remember that this isn't intended to be comprehensive, it's just to give you ideas. You may also want to analyze other aspects of the company.

Feel free to copy and paste it, for your own analyses.

Also periodically check the transactions you decided not to do, to see if you made the right choice and why.When you've finished the analysis, show it to some other investors you know, and see what they think of it.

Transaction Template

Once you've completed the analysis above, if you decided to go ahead with the transaction, you will probably want to record the following information (or something similar) for record keeping.

Feel free to copy and paste it, for your own records. Also, if you don't already have a broker, you'll need one to perform the transaction for you. (it may take a few days or weeks to get one, so it's best to do this in advance)Periodically, you should examine the forms you've filled out to see how well you did. Put them in order, from best to worst, and see if you can discover any patterns. Maybe your circle of competence is different than you thought; or maybe you'll find that you hold too long or not long enough.
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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