How to invest in Johnson & Johnson from Australia

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💲Minimum deposit 200$
🪙Instruments: Stocks like Johnson & Johnson, crypto, forex, commodities
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How to buy

If you live in Australia, the best way to invest in Johnson & Johnson shares is, definitely, this popular broker.

eToro*, one of the main brokers around the world, is registered and licensed, among others, by the Cyprus Securities and Exchange Commission, and therefore complies with all the regulations of the European Union, the most demanding in the world.

We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in your language, accepts users from Australia, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.

How to sign up, step by step

The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.

Now check your email inbox: you have received an email from eToro, click on the button and your account will be verified.

Once on eToro, you just have to click on “Deposit funds”, in the page menu.

There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:

As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.

If you have a choice, we do not recommend bank transfer because it takes longer, and it can be very frustrating to see the price of Johnson & Johnson rising while you wait for your transfer to be done.

How to make your first purchase

When eToro has confirmed the receipt of your credit, you just have to search for “Johnson & Johnson” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.

*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

What does Johnson & Johnson do?

Johnson & Johnson is one of the largest and oldest American companies. It was founded in 1885 by Edward Johnson along with brothers James and Robert Johnson, taking their surnames as the company name. Since then, the company has grown to the point that Fortune magazine ranks it among the 100 largest companies in the United States.

Initially, the creators' idea was to manufacture and market a line of ready-to-use surgical-grade bandages. But as time went by, Johnson & Johnson added more products to its catalog, although always related to the health area.

This is how it went from bandages to produce a wide variety of items that can be framed in pharmaceuticals, medical devices and consumer goods. All this is marketed around the world with its more than 250 subsidiaries that are located in 60 countries and distribute to the rest.

Of the product categories mentioned above, pharmaceuticals are the ones that generate the most revenue for Johnson & Johnson, representing 50% of the total. This is followed by medical equipment with 33% and consumer products with the remaining 17%, which are marketed under the Johnson's brand.

In addition to the above, another important aspect of this company is that more than 50% of its revenues come only from the United States. Some 23% comes from Europe, 18% from Asia and Africa and 7% from the Americas, excluding the United States. This gives us an idea of how important the American market is for the company.

Johnson & Johnson for investors

If there is a perfect stock it would be Johnson & Johnson for several reasons. The first is that it is one of the most solid and consistent companies out there today. Also, as we mentioned, it is among the largest in the United States.

Another important point is that its share price, although historically not very volatile (which is appreciated), grows year by year. So much so that, if we compare the growth of Johnson & Johnson's share since its foundation with the growth of the SP500, which is taken as a gauge of the American economy, Johnson & Johnson is the winner with a great advantage.

Finally, this company has almost 50 years paying uninterrupted dividends to its investors and this is something that few companies have achieved. To this we must add that they are growing dividends that the last 20 years have increased on average 10% per year. This makes it a must-have stock for any investor.

Why do we recommend it?

  1. Allows to replicate investment moves
  2. You can go short
  3. Very intuitive and straightforward
  4. Leverage is allowed
  5. There are tons of possibilities for investments

Official main site: www.etoro.com *

You should certainly consider eToro in case you are thinking about purchasing Johnson & Johnson shares from Australia.

This platform is known for making “social trading” fashionable. Social trading is a revolutionary way of investing in which users can replicate the techniques of other traders who have been generating earnings for a long time.

If you are still a newbie or do not have much experience in investments, eToro is great for you. You can rest assured that you are making a smart investment since the site duplicates those from subjects with a long profit record. Additionally, in case you are an investor, the platform pays for your knowledge.

It is also very convenient how accessible is the platform, ideal for beginners who are taking their first steps in the investment world.

Financial assets you can trade in eToro

Besides stocks, there are way more financial instruments you can trade .

Index Funds

If a long-term investment sounds good to you, and you won't need to withdraw your money in at least five years, index funds can be the best choice. This kind of investment is also great for beginners since the risks are much lower. Besides, the variety is wider.

Unlike a lot of people think, beating the benchmark is far from being a piece of cake and very few fund managers achieve that, apart from some famous cases.

In practice, all that glitters is not gold: if a fund manager achieves to beat the benchmark, it is only for a short period or on a specific occasion. Or perhaps they would charge very high rates and indexing would be a better decision.

With index funds, you don't have to worry about that: most of the time, they beat active managers in the long term, and the fees are so much lower.

Forex trading

Forex or currency trading is the exchange between two currencies.

In case you decide to trade EUR and USD, you purchase euros at their price in dollars, anticipating that after buying the first currency (the euro) it will increase compared to the second (the dollar), to make a profit by selling it. Assume you entered when the price of one euro is 1.10 USD and you leave when the price has gone up to 1.15: that margin is yours once you sell again.

You may be thinking that this form of trading requires high investments, and you are not wrong, since variations are usually minimal, and often you will need to use a lot of leverage (which is an important risk). If you are a novice in trading, we don't recommend beginning with the currency market, because it's not the safest alternative.

Most currencies are available on eToro. Nevertheless, bear in mind that in Forex trading sales are made through CFDs, which means the underlying asset won't be yours.

Commodity market

The main benefit of trading with raw materials is that prices are more stable than those of other financial assets. In fact, their stability is what makes most investors choose raw materials when facing possible inflation or market volatility. However, the cost of raw materials depends on supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.

Remember that the only intended income from the investment in raw materials will come from their further sale because these kinds of assets do not distribute dividends or pay interest.

There are two basic types of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; and the latter are agricultural products as cocoa, soybeans, rice, or sugar, among many others.

About Contracts for Difference

If you already accessed eToro, you probably noticed that the initials CFD appear repeatedly. Before we come back to it, we must say that cryptocurrency trading on eToro is only CFD if you short sell or use leverage above x2 (and this is not even available on the platform).

We will also explain concepts such as leverage and “going short”, in case you are interested in day trading cryptocurrency or more advanced operations.

The advantage of eToro is that it allows you not only to bet when you are “in the black”, but through CFDs you can also bet “in negative”. Let's say that you have the conviction that the Johnson & Johnson will fall, so probably you consider that the best thing to do is wait until it does and then go in. But if it really falls, it might mean extra money for you.

The practice known as “going short” will allow you to do that. It works, more or less, as it follows:

  • You obtain from a loan 100 units of Johnson & Johnson, with a total value of $ 5,000 (these numbers are fictional)
  • You sell the 100 units at $ 5,000
  • The price is reduced, as you thought, and the unit of Johnson & Johnson now costs $ 30 instead of $ 50
  • You obtain the 100 units again, but at $ 3,000
  • Now you give back the 100 units to whom made the loan in the first place
  • You will have made $ 2000, since you keep the difference

Take into account that it is much simpler than it sounds: we can just say that by trading in Johnson & Johnson you can also earn money if you predict it will go down.

How are CFDs and futures different?

What are the differences between Futures and CFDs?

  • Counterparties
    • Futures: operations are made with another trader.
    • CFDs: the counterparty is the broker (eToro).
  • Date of expiry:
    • Futures: there is an expiration date. Once the contract expires, it is closed and can't be reopened.
    • CFDs: on the contrary, there is no expiration date. It is possible to get back to a good position before you close.
  • Trading markets available:
    • Futures: there are limited options
    • CFDs: they include lots of different assets, commodities and currencies
  • Minimum investment:
    • Futures: very high minimum investment
    • CFDs: very low
  • Trading costs:
    • Futures: being higher figures, rates are, commonly, proportionally lower
    • CFDs: higher (although not too much)
  • Use of leverage:
    • Futures: nonexistent leverage
    • CFDs: accessible leverage

How to deposit funds on eToro

Within the payment options that you will find on eToro are: bank transfer, PayPal, credit card, Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is very easy. Just go to “Deposit funds”, set an amount and choose the payment method you prefer.

Remember that for security reasons, you need to be the holder of the credit card or the account.

The lowest amount you can deposit is $ 200, and there is a maximum authorized if you are not verified, so if you want to trade with higher amounts, contact Support previously to verify your account.

The platform accepts transfers in any currency, but charges a fee for making the conversion to USD. That is why we suggest, if it is in your hands, depositing in USD from the beginning.

eToro Interface

As we have mentioned among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can trade without having to read endless explanations.

If you are familiar with any of the most popular social networks today, such as Whatsapp or Facebook, you can perfectly manage this platform.

We will explain the registration steps and the different tabs that you will see.

You will have to provide some personal information when registering.

To complete your profile, you will see that they ask you some questions about your experience as an investor.

However, it is not like you are answering an exam. It is only a way of finding out how much knowledge you have and what type of assets they can recommend. For example, if it is your first experience in the investment world, they will not suggest that you invest in futures.

Let's review the different functions of the interface.

With the “Set Price Alerts” tool, you'll be able to program an alert when an asset is at a certain price. Just click the tab and you will be able to set it. This is helpful in case you want to purchase an asset and you are waiting for it to decrease.

“News Feed” is for social purposes. This is the section where users can share opinions and learn from each other.

“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we discussed previously in this guide the different financial instruments on eToro:

  • Cryptocurrencies
  • Exchange-Traded Funds
  • Shares
  • Raw materials
  • Currencies
  • Index funds

In “People”, you can find the profiles of eToro users and their historical performance. This is where you can copy with just one click the movements of your preferred traders.

You can search for those users that you find more interesting: by average earnings, types of assets or risk level, for instance. You just have to type the amount of your investment and eToro itself will replicate the movements of the selected investor, in proportion. This means that if you have $ 1000 and the investor puts 10% of his or her balance in an asset, the platform will invest also 10% of your funds (that is, $ 100) in that same asset.

Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.

fondos
The benefit of using CopyPortfolios instead of copying people is that this way the risk will be more diversified. There are all kinds of portfolios that you can recognize easily and are classified by sectors. So, in case you suspect a specific industry, like biotechnology or healthcare, will prosper in the future, you should look for that specific portfolio.

“Social trading”, an innovative concept

eToro was the first broker to suggest that trading could become social, and time has proven that it was a great idea. Since then, a multitude of copycats have appeared, but eToro is definitely superior.

But it wasn't just about creating yet another social network to talk about investment. The real achievement was in allowing users to replicate the moves of experienced traders, who were in turn paid for their ideas.

When you enter eToro you will find in the left menu the options “Copy People” and “Invest in CopyPortfolios”.

CopyPortfolios

“CopyPortfolios” are kinds of ETF or thematic index funds, a portfolio that bundles a number of assets in a certain sector. For example, if you consider that a particular sector will have significant profits but you are not sure which investments to make, you just have to select a portfolio that includes a variety of related companies in that industry.

You should know that in the last year, CopyPortfolio has generated returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected amount, place the stop-loss and click on the “Invest” button.

Copy People

The other option is to directly copy users of the platform: in “Copy People” you can find eToro users who are very successful investing and whose moves you can duplicate very easily.

You will see in the profile of each user: the type of assets they operate, their risk profile (a higher risk implies higher possibilities of earning more or losing more), as well as their trading history.

Besides duplicating other investor's strategies, which is really interesting and helpful, we also recommend that you make the most out of the community by reading other user's comments. You can learn a lot from their experiences, particularly if your goal is to make a living from trading.

Trading strategies

There are different methods or ways for crypto trading, like day trading or buying and holding, for naming just a couple.

In case you are just beginning in the world of investment, our suggestion is a middle point: when you open your position, set a dynamic stop loss 15-20% under the maximum price, and let the rest happen on its own.

For instance, if you buy a cryptocurrency when its price is $ 15, then it rises up to $ 25 and decreases again to $17, the stop-loss will allow your operation to be closed, perhaps at $ 21 or $ 22. Hence, you will get a pretty good income.

You may be wondering: why not selling back when the cost is at its maximum? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and is more realistic.

Later on, you will be able to apply more sophisticated techniques, like going short or using leverage.

How to use leverage in trading

Are you familiar with the term “leverage”? We'll put it simply: trading lets you invest more money than you can have in a given time. That is, if you get in with $ 100 and you put them with x2 leverage, you will be actually investing $ 200.

Everything you should know about leverage

Assuming that, for example, you are sure that Johnson & Johnson price is going up, and that you have $ 1,000 for “going long”, you must know that you can increase your investment and earn higher profits.

Possibly, you could ask your bank for a loan, put an asset as collateral, wait for it to be accepted, wait for the money, and then buy Johnson & Johnson… However, once you've managed doing all that, probably Johnson & Johnson would be already at a much higher price, and investing wouldn't be a good idea anymore.

Leverage is like a loan, but it is only a few clicks away! eToro allows you to operate with much more than what you have on the platform's wallet. Before trading, you will see the leverage options as in the image below:

apalancamiento

Within other markets, the ability to leverage is greater. The reason is that leverage is most used for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. That said, I'm going to explain better how leverage works.

You start with $ 1,000 and decide to use leverage x2, which means you would really invest $ 2,000 (the extra $ 1,000 to reach $ 2,000 are “borrowed” from eToro).

A week later turns out that Johnson & Johnson valuation rises up and now the value of your investment is 20% higher, which means, you have $ 2,400 in Johnson & Johnson shares. But you don't want to be too reckless, so you decide, wisely, to sell again.

Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 is the money you put in yourself, so you'll have earned $ 400.

By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.

It may sound too good to be true. The thing is, it can also play against you. If everything goes as you planned, you will earn profits in little time; but if the opposite occurs, you will also lose more really quickly.

For example: if instead of increasing by 20%, the price falls by 10%, you won't lose $ 10, but twice that figure, which means $ 20, because of the leverage. That is why to operate with leverage it is crucial to know two other concepts: Take Profit and Stop Loss.

Take Profit is a limit you can set when trading: you set the platform to sell your assets once they get to a point above the entry price. For instance, you can buy Johnson & Johnson shares at $ 100 and ask eToro to close your position automatically when it goes up to $ 120. It is very helpful to avoid being blinded by greed: we would all take a 20% profit when investing, but when you reach that 20% it is easy to want some more and risk losing it all. It's like you made sure now of not acting recklessly in the near future.

Also, if you use leverage you absolutely need to place a Stop Loss order (take into account that any small loss is greater with leverage). Take into account that eToro will recommend a limit for Stop Loss, but it is better to place it lower than the platform suggests.

Frequently asked questions

How much is the minimum deposit?
The minimum deposit in eToro is 200USD.

When will I be able to withdraw my funds?
Whenever you want. Simply sell your Johnson & Johnson investment, click on “Withdraw Funds” and that's all.

What deposit methods accepts eToro?
Available payment methods are: Bank Transfer, Credit Card, PayPal, Neteller, Rapid Transfer, Skrill and Klarna / Sofort Banking.

* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.