This guide explains how to invest and choose stocks for investment. It doesn’t explain how to think, though. There is some minimal decision-making you’ll have to do for yourself (a finger to click “Buy” won’t move by itself, you know). So, here’s a step-by-step guide on where to find things, what to pay attention to, and how to use the information you see, to best serve your investment objectives. Let’s get going.
- Open trading application. At the bottom, you’ll see the menu bar with four icons in a row. Tap the second one from the left – the one that looks like a magnifying glass – and it will take you to the Discovery area.
- In the Discovery area, you’ll see the search bar. Type the name of a stock or an asset you want to find out about.
- If you don’t know what you need, you can use a tag search (it’s possible to search several tags at the same time). Tags are automatically sorted: from the more generic to the more specific. So, just following their breadcrumb trail, you’ll get closer and closer to the exact market screening criteria you need. That way, you won’t have any trouble finding an asset that fits your investment preferences. What’s more, you can always check out our Collections – you might just find a very interesting and flexible addition to your investment portfolio.
- Once your search is done, tap on what you were looking for, and that will take you to the asset’s Analytics section. Here, you’ll find a very convenient price chart, where you can see the price performance of your asset by day, week, month – all the way up to an all-time overview…
- Below this, you’ll see four stacked windows with essential investment analytics.
On the top left, you have the company’s Price-to-Earnings ratio (p/e) . At a glance, you’ll be able to see how favourably (or unfavourably) it compares to its market sector as a whole. The logic is this: if the company ratio is greater than 10%, it’s good; if it’s between 0 and 10%, that’s normal; if it’s less than 0, that’s bad. Unless you’re an investment pro who likes living on the edge, it’s advisable to stick with “good” or “normal” company-to-industry p/e indications. Be cautious with “bad” assets, as these may not be the most secure options for long-term investment.
Below the p/e square, on the bottom left, you’ll see the Dividend Yield, written as a percentage. A company’s yearly profit is divided by the number of shares. This gives us the earnings per share (or, EPS – you’ll often come across it in investment analytics). These earnings per share are divided by the share value to give the dividend yield you see. Generally, the question to ask is this: is the stock’s profit good enough for the price it costs the stockholder? If the answer is yes, your stock’s dividend yield will be in green.
On the top right is Revenue Growth. This too is a percentage, and it shows how much the company revenue has increased or decreased over the year. The colour-coding is the same here: if growth is good, it’s green-lit.
Finally, on the bottom right, you’ll see the time left before the register closes for the day. That’s just to keep you on track for any market transactions you want to get through today.
- Scrolling down, you’ll find a “what-to-do” analytical tool. Based on information from investment rating agencies, it shows you what most investors prefer to do with the asset you are exploring: buy, hold, or sell. That’s not a prediction of the asset’s performance. Rather, it’s a collective opinion compiled for you. Basically, it’s the “Ask the audience” option. So, a good reference to keep in mind.
- Now, here’s something a bit special: our “Big Gain” indicator. This appears if the company you’re checking out happens to have performed really well over the year. You’ll see it right away, in a big blue rectangle with attractive numbers and the words “Big Gain Detected”. So, if the company is looking like a profitable option, it’ll pop up right before your eyes.
- Finally, scrolling right to the bottom, you’ll see the company’s fundamental information: who the owner is, what the business is all about, its notable achievements, and anything else you should keep in mind when considering buying its assets. Don’t worry, it’s short and concise – but you need to know what you’re planning to invest in, don’t you?
- Remember that menu bar with the four icons at the bottom? Take a look at the first icon on the left – the one that looks like a pile of paper. That’s the Watchlist. This is where you can add companies that you’re generally interested in but are not ready to buy stock with yet. The Watchlist allows you to watch the performance of companies on the list in real-time – hence the name.
- Once you make up your mind to buy one of them, press the nice big green “Buy” button. You can guess what happens next.
- Now, the Trailing Stop is a really handy investment tool for protecting your funds – trust us, you’re going to want to use it. It works like this: if your stock’s value drops by more than you’re comfortable with, Orca will sell it automatically for you. You choose the percentage you’re willing to risk, and Orca takes care of the rest. Besides, just look at this marvelous scrolling scale! Anyway, Trailing Stop is something you’ll want to make use of.
- It could happen that, while you’re weighing up the pros and cons of buying a particular stock, the exchange closes for the day. Not to worry – that’s what Postponed Orders for. Once the LSE opens, your transaction will be processed just as requested.
- Before you get to the point of no return, it’s good to review your transaction. The Order Summary will show you how many shares you’re planning to buy and at what price;the trailing stop percentage you’ve set; and what the fees and taxes you’ll have to pay. At the very bottom, you’ll see a line saying “With all investments, your capital may be at risk”: that’s just to remind you that, unfortunately, the world of investment is not a profit factory, and that risk is the flipside of profit potential. Don’t get too philosophical, though: the “Place buy order” button won’t stay active forever. Tap it, and your order will be made.
- Once it’s done, you’ll see the following “happy” screen. It means that your order has been received, and has either been executed immediately or will be executed as soon as the market opens. Congratulations!
Back to those four icons. We’ve checked Watchlist and Discovery on the left. Now, it’s time for History – that’s the icon on the right that looks like a person with a round head. Nothing major here: this area serves as a record of your transactions. You want to keep track of your progress, don’t you?
More free shares
One last thing: if you’re really lazy and don’t want to do anything – not even buy some worthy stocks – you could just share your refcode and get free shares for every new user who registers with your code.
So, that’s how you buy stocks with the Orca investment app. Pretty easy, isn’t it? Share your impressions in the comments and give us your suggestions – we’ll be happy to keep polishing the app to make the investment process as smooth as you want it to be.