3 Things I Look for When I Check on My Brokerage Account

They're all important items to check off.

The good thing about investing in a brokerage account is that it's not restrictive. If I want to cash out investments and use the money to buy a car or go on vacation, that's my choice. Meanwhile, with an IRA or 401(k) plan, there are penalties for taking withdrawals from your account prior to retirement.

Still, the money I have in my brokerage account is money I don't plan to use for a long time. My goal is to let that money sit as long as possible.

In spite of that, I like to give my brokerage account a thorough checkup about once a month. And when I do, here are three specific things I look out for.

1. Total performance

When the stock market performs poorly, my portfolio tends to follow suit. And when the market is up, my portfolio tends to gain value.

I'm okay with this pattern -- it's one that many investors experience, and it's one that makes sense. But if my portfolio starts to stray from this pattern -- meaning, not gain value in accordance with broad market gains -- then it's a wakeup call I need to shift investments around.

2. Individual stock performance

I hold a number of different stocks in my portfolio. And sometimes, the performance of one stock can vary tremendously from the performance of another. That, too, is okay. But one thing I try to look out for is a consistent pattern of losing value, especially at a time when other stocks are gaining value.

This especially applies within the same market sector. If I own a few tech stocks, for example, but only one company I own has share prices that are falling from month to month, I might make the decision to dump that stock, take a loss if need be, and free up money to invest in a more viable company instead.

3. Diversity

It's important to maintain a diverse investment mix within your portfolio. That could not only set the stage for long-term growth, but also help you avoid losses. If I see that my portfolio isn't as diverse as expected, I tend to shift assets around to correct for that.

Now to be clear, I make a point to hold stocks across a range of market sectors. But over time, stock values can fluctuate, creating a scenario where you're not as evenly invested as you thought.

Case in point: You could start out with 20% of your portfolio in tech stocks. But if those specific stocks gain a lot of value over a short period of time, you could end up in a situation where you have 40% of your portfolio in tech. If that's not something you're comfortable with, you can shift assets around for a more ideal mix.

No matter what you intend to do with the money in your brokerage account, it's a good idea to keep regular tabs on your holdings, whether you opt to do so monthly or quarterly. I make a point to check these three items off my list during my ongoing brokerage account reviews, and it could benefit you to do the same.