Your Investment Strategy Determines Your Stock Watching.

It depends largely on your investment timeframe. If you are a day trader, watching your stocks daily is a good thing. However, for long-term investors, it may not be a good idea to watch your stocks daily. That's what the experts say, and it is solid advice albeit slightly difficult to implement.

What you should focus on is the thought process behind your investing strategy. If you are a long-term investor, you probably choose the stock after careful analysis of its business and prospects, so you know it is a solid business. Therefore, you not be worried by the daily price swing as you monitor its performance.

If you are a short-term trader who wants to profit from the price trends that play out over a couple of days, you should keep a close eye on the stock. Better still, you should have a stop-loss order that allows you to sell the stock if it falls below a certain price, indicating that a downtrend has begun.

The right answer to this question is that you should be looking at your stock portfolio through the lens of your overall investment strategy. This way, the daily price swings shall be filtered through your strategy, which should inform when to sell or buy more shares.