Investment may seem a purely technical activity from the outside. Choose, click, invest, wait, and reap the harvest of your investment decisions. If you’re a fresher or just have started to invest, that might be the totality of your concept of investment. But as you can guess, that’s not the case: investment is much more complex than you might think – and some of the reasons for that complexity may surprise you – or even terrify you.
Of course, every investor experiences some fears when investing, so you’re definitely not alone in worrying about who’s taking risks with your hard-earned money. But do you really need to cope with this anxiety?
Now, this article isn’t going to advise you on this, nor will it pressure you to invest, or to change your mindset. When it comes to your finances, often even the most well-meaning advice can be demotivating. Rather, this article will offer you a solution specially designed to minimise your fears. This solution is called Orca. So let’s dig into your fears about investing, and see what Orca can offer to help you cope with them.
#1 Fear of the unknown
Let’s face it, investment is not that simple. What’s more, it’s risky, volatile, and requires at least basic investing skills. And here you face the first fear of every investor: the fear of the unknown – a completely natural response to all those stocks, charts, figures, percentages. After all, all these things are pretty new to you, so no wonder you might hesitate in taking the first step.
At Orca, we’ve highlighted every step of the investing process: from opening an account or ISA to making a withdrawal. The whole process is designed to be self-explanatory, to walk you through how things are done, as you’re doing it. If you’re buying an asset and don’t get some features you might want to use during the process, you can look up the description and decide whether to use it or not. For example, if you want to set up the Trailing Stop feature, but don’t know exactly how it works, you can always read a hint. Such hints work for every element involved into the investing process in Orca.
Learning by doing is one way of approaching the process of overcoming your investment fears, as long as you are not investing more than you can afford to lose.
#2 Fear of too much choice
There are a lot of stocks out there, and they are all worth considering. The mind trap here is that the more investment options you discover, the more opportunities you see, and the harder it becomes to decide which are right for you. We’re not even talking about analysing the thousands of stocks on the London Stock Exchange. Orca has selected a few hundred assets – but that’s still a very wide choice, isn’t it? Investors often feel intimidated by this kaleidoscope of opportunities. So how do you put that all together? How can you make sense of this landscape and compile a potentially profitable portfolio?
Keep it simple: start exploring the market with a Collection. There are three to choose from, depending on what risk level you’re most comfortable with. You don’t even have to buy the lot – just pick a stock from the suggested Collection if you’d rather. Or just study the Collections and see which companies fit which risk profile, so that you learn the selection criteria. Or you can explore other assets by category, such as Tech, ESG, or British Companies. As numerous as they are, stocks can always be narrowed down and sorted to suit you, and Orca is happy to show you how it’s done.
#3 Fear of making a mistake
This is similar to the previous fear, but it emerges by comparison. “Oh, gosh, just look at how fast that stock is growing! Why didn’t I grab it earlier? And this one’s even better! What was I thinking?” This is likely what’s going through your mind when you start doubting your decisions. The grass is always greener – that’s the key here. Because as you’ve already learned, most stocks have investment potential – you just need to know which ones match your financial objectives.
First and foremost, Orca shows you expert reviews on each stock, so that you can see where it’s headed and decide whether it’s headed your way or whether another one would serve you better. Read Orca’s information on stocks and analytics carefully. By matching this with your own objectives, it becomes easy to invest in what suits you best.
#4 Fear of losing money
When it comes down to it, all other fears derive from the fear of losing your money. This is the heart of the matter. And here’s the thing to remember:: nothing will prevent you from losing your money.
Let’s be clear: No one can give you a 100% (even 95%) guarantee that your investment is protected from loss. If anyone promises you that, avoid that person or service at all costs, because it’s a blatant lie.
This is why it’s so important to always consider the risk that you may lose your investments, and to never, EVER invest all your money at once. Once you can accept that, things get easier.
Losing money can come from getting two key parts of the process wrong: 1) not having relevant information and 2) not taking the appropriate action.
Orca provides real-time market data on every asset we offer. Every asset you find on the app comes with a full range of information on it, including expert fundamental information such as what the company does, what its valuation is, and how big it is.
Making your own decision with all this information on hand is much easier.
2) You have the option of Orca’s Price Alerts, and Trailing Stop feature. You can set up Price Alerts for a specific stock price, and Orca will notify you once your favourite asset reaches this price. In turn, Trailing Stop, when activated, triggers a sell order when the stock value falls below the price level you set when placing an order. This means the stock will be sold automatically at the price you want, and you won’t keep losing your money.
#5 Fear of the unexpected
Nobody likes hidden fees, sudden losses (e.g. due to market data lag), or other unexpected surprises during investing. Especially when the market’s behaviour is changing rapidly. To minimise your uncertainty about the investment process, your investment app needs to be a) transparent, reflecting any fees and extra features you’re paying for, and b) accurate, in the data and news it provides you to help you make wise and timely investments.
First of all, Orca provides completely transparent information on the fees you pay when investing, including PTM Levy, stamp duty, the app’s fee, and the maximum cost you’ll pay (including the0.3% reserve).
You also get Orca’s news feed, direct from Dow Jones. So, it’s pretty unlikely you’ll be caught off-guard by a big wave (unless, of course, you turn off Orca’s notifications when you’re on holiday – not that you don’t deserve one!).
On top of that, the same Trailing Stop we mentioned above won’t let the market’s waves wash away more of your holdings than you let it. Once you know your stock will be safely sold if its price drops to your risk limit, you don’t have to worry how many other risk factors there are.
#6 Fear of missing out
“I’ve never experienced FOMO”, said no investor ever. One of FOMO’s perils is that it may lead you to take risks you wouldn’t normally take. Those risks can take their toll in the long run, leaving you with unwanted assets in your portfolio, or, on the flip side, making you sell promising and potentially profitable assets. We all saw what happened with GameStop recently. That was a clear illustration of FOMO.
The best way to cope with FOMO is to just accept that you can’t control everything. Simply put, there’s no way you can stay updated all the time. Even the most well-informed investors still frequently fear that they’ll miss big news, miss an update, miss an event, miss a release. They’re afraid of looking at the charts in the morning and finding a disaster wrought by a freak storm that came in under the radar.
What you can – and must do – is minimise your risks, just in case you miss something. With Orca, that’s easily achieved, through real-time market data and the Trailing Stop feature. Explore the assets that interest you with live information direct from the stock exchange. Read expert analysis and forecasts to make a solid assessment of the asset. This will all help you make up your mind about the asset: whether you like it or not, whether it fits your financial objectives, whether you want to buy it, discard it, look into it further, or simply wait for a better moment to add it to your portfolio. There are plenty of options for you to explore with Orca, and to protect with our Trailing Stop, which saves you from losing any more than you’re comfortable with. All of this helps keep your risks as low as possible. Note, we didn’t say eliminates your risk: that’s not possible, since all investment involves risking your money. But as long as you stick to this simple strategy, and make use of Orca’s investment tools, you won’t have to fear missing out any more.
Risk can cause fear. There are always risks in investment, so you will face fears. They will come at you whether you operate a £1,000 account or a £1,000,000 account. After all, it’s your hard-earned money, your blood, sweat and tears, isn’t it? Do you like taking a chance with it, to maybe make it grow? Maybe you do. Maybe you don’t. After all, there are different kinds of personalities when it comes to risk-perception. Either way, the point is that fear is just one of the elements investment consists of – and you have to think of it as such, nothing more. Fear is normal. The good thing is that, with Orca, the downside of emotions like fear is no longer such a concern. So, fear not – there is a solution not just for investing, but for the fear of investing. We created Orca as the ultimate tool to fight those fears. And we’re still working to make it even more effective than it already is. We hope you’ll enjoy this fascinating journey with us. So take a deep breath and dive in! It’s all cool.
Orca does not provide investment advice, and should a customer have any doubts they need to contact and investment adviser. Terms and conditions apply. Your Capital is at Risk.