Of the 5.1 billion adults in the world, 80% of them don't invest. Of the investors, only 5.5% make money. That leaves 798 million adults who lose money when they're investing. If this article is anything, it's a speed date with those who don't invest and those who are losing money.
Even the most seasoned investors lose some of the time. But in the last 12 years the S&P 500 has gone up, on average 7.40% year on year - so, should we really be losing so much? This year has already been a tough one as we come out of a pandemic and straight into war, inflation and a cost of living crisis, we don't need investment losses on top of everything else.
So the speed dating bell rings, we all take our seats and you, dear investor, are sitting opposite us, Upside. We may not fit in a regular chair, but we do fit in an app. We may not be conventionally good looking, but as an app, our UX/UI is pretty great. So, onto our pitch...
DIY investing via commission-free trading apps continues to boom, long after the GME, meme stock headlines. You'd think, since the markets have been hitting highs for over ten years, that DIY investing would be simple: figure out what stock is hot, buy it at a low and sell at a high. Unfortunately, it isn't as simple as that. So why are DIY investors losing money? Well, "free” trading apps aren’t actually free, these guys have gotta pay the bills somehow.
It's also to do with mindset and education. Statistics show that 60% of DIY traders take on positions with no stop loss, and 78% of retail investors agree with the statement “I trust my instincts to tell me when it’s time to buy and to sell”. One final stat: over 4 in 10 retail investors do not view "losing some money" as a risk.
At Upside, we see this as gambling - ultimately harming the financial freedom of millions of people.
Unless you are a professional investor (or on furlough with time to kill), who has spare hours (and spare cash) each day to understand the precise movement of each stock to find out why they went up or down last week?
We see the problems facing investors like this: lack of analysis tools, lack of available insights, lack of financial literacy and lack of time.
Everyone should have access to buy and sell shares on an equal playing field. Retail investors shouldn't have to compete with the pros and their Bloomberg terminals and their face to face access to companies. There should be an app out there that does some of the homework for them, tell them where they're going right or wrong and how to make their portfolio work for them.
There are some things you just want to know like:
What happened to my portfolio over the past day/week/month? What were the leading factors in my portfolio's performance? Was it the general market? Was it a few really bad eggs in my basket? Am I too heavily invested in one sector that's currently experiencing a slump? If so, what is causing that slump?
You want an app to help you understand your mistakes and help you correct them.
Well here's where the Upside app comes in. The app has been specifically built to allow you to quickly see where your portfolio is going astray.
You can click on each stock and not only find price changes but analyst ratings, news articles, technical indicators, financials, ESG ratings and other users' Ideas on them. You can also track and comment on other users' Ideas and get a discussion going.
You can build a portfolio of your own investment Ideas, track current and historical performance and an overall ESG rating. We've also got learning in-built in the app, with articles and videos covering a myriad of complex financial topics.
Trading isn’t yet a functionality, but it is coming soon, and until then, you can use the app alongside your current trading app to test your theories and plan in advance. Or if you're new to investing, it's a perfect training ground to get you started on what you need to do in order to become a great investor with a professional framework.
The two minutes is up and the bell rings. Have we found a match?