How to use this application
This application uses grades to represent equities inside your portfolio, and according to the grades, shares and prices of each stock, it presents the ones that are farther from the goal of your portfolio and shows how many shares you would need to buy to rebalance it. You can also change grades with time to represent changes in your investment strategy.
About the grade system: this grade represents many factors chosen by you to balance your portfolio. The higher the grade, the bigger fraction of your total portfolio will be assigned to a given stock. Using grades instead of percentages or fractions, you won't need to worry about rebalancing when you remove or add a position, since the others will be recalculated based on the total grade.
Hypothetical example:
| Stock | Grade | Shares | Unit Price | Total | % of total |
|---|---|---|---|---|---|
| Stock 1 | 10 | 100 | $ 30 | $ 3000,00 | 60% |
| Stock 2 | 10 | 100 | $ 20 | $ 2000,00 | 40% |
| Total portfolio value | $ 5000,00 | 100% | |||
Since both stocks have the same grade, they should represent the same value in this hypothetical portfolio, but Stock 2 is missing $ 1000 in order to have the same weight as Stock 1. In that case, the application would signal that you need another 10 shares of Stock 2.
When you add a new position, e.g. Stock 3, with a grade 12 and 50 shares, the portfolio would be like this:
| Stock | Grade | Shares | Unit Price | Total | % of total |
|---|---|---|---|---|---|
| Stock 1 | 10 | 100 | $ 30 | $ 3000,00 | 40% |
| Stock 2 | 10 | 100 | $ 30 | $ 3000,00 | 40% |
| Stock 3 | 12 | 50 | $ 30 | $ 1500,00 | 20% |
| Total portfolio value | $ 7500,00 | 100% | |||
In that case, since it was assigned a grade 12, Stock 3 should represent 37,5% of the portfolio (12/(10+10+12)), but it only has 20%, hence, the application would signal that you need another 44 shares of Stock 3 to reach 37,5%. The portfolio would then be recalculated:
| Stock | Grade | Shares | Unit Price | Total | % of total |
|---|---|---|---|---|---|
| Stock 1 | 10 | 100 | $ 30 | $ 3000,00 | 34,4% |
| Stock 2 | 10 | 100 | $ 30 | $ 3000,00 | 34,4% |
| Stock 3 | 12 | 94 | $ 30 | $ 2820,00 | 31,2% |
| Total portfolio value | $ 8820,00 | ||||
Since Stock 3 did not reach the goal that was set with the new portfolio value, the application would still signal that you need another 16 shares of Stock 3. And it would keep on recalculating the ideal share quantity on every transaction until each Stock reaches the goals that you have set.
How to add a position
To add a new stock, type its ticker or the name of the stock in the field "Company", then type the amount of shares you have and the grade and finally hit submit. A new card with the stock should be displayed shortly after. All your information is only saved in your own browser. We do not keep any transaction data or personal information!
How to edit a position
To change the grade or amount of shares of a stock, click on its card and in the modal that shows up, you will be able to make your changes. When you're done, click save.
How to remove a position
To remove a stock, click on its card and type 0 (zero) for the amount of shares, then click save.