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How to buy
If you live in Australia, the best way to invest in Qualcomm shares is, definitely, this popular broker.
eToro*, one of the main brokers around the world, is registered and licensed, among others, by the Australian Securities and Investments Commission (ASIC).
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: you should have received an email from eToro, click on “Verify my email” 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.
How to make your first purchase
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Qualcomm” 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.
Qualcomm is an American technology company that is well known because its chips are widely used in the smartphones industry. And among all the chips it manufactures, surely the best known is the Snapdragon processor, which is preferred by most smartphones manufactors.
This company, founded in 1985 in California, initially offered satellite location and messaging services to long-distance transport companies. At the same time it produced integrated circuits for equipment specialized in digital radio communications as well as its first patents, which would be essential for the company.
It would be in 1990 when Qualcomm has the first approach with cellular technology, particularly with CDMA, which would define the future of the company. This fact plus its patents mark a milestone for Qualcomm because, although it is known for Snapdragon, its real business is in cellular technology patents.
In those years, Qualcomm developed a lot of wireless technology that it filed and patented in the United States. As time went by, its patents would be taken as standard in the cellular industry and for wireless technologies.
That is why its main business and source of income is the licensing of patented technologies. And all, but all cell phones are dependent and use in one way or another some of Qualcomm's patents. Thus, Qualcomm's licensing fee is between $20 and $30 per mobile device produced.
This is an outrageous figure for the sector, being 10 times higher than the average and for which Qualcomm has entered into legal disputes in the United States for monopoly. Although Qualcomm has come out of this with flying colors and has argued that the price for using its patent is higher because its patents are more important and indispensable.
As you can imagine, Qualcomm receives a monstrous income from patent licensing alone. This allows the company to pay quarterly dividends to its investors for an average of $2.6 per year. In turn, these two facts are reflected in the positive returns that Qualcomm's stock has on the stock market.
If we add to this the fact that the legal battles that Qualcomm has won basically allow it to continue with its patent monopoly, we can affirm that this company is one of the best to invest in the long term.
We said previously that eToro is very friendly and intuitive. Anyone can start investing without having to read endless explanations.
Everyone who has used Whatsapp, Facebook or any of the most common social networks, knows enough to operate with the eToro interface.
We will explain the registration steps and the different sections that you will find.
You will have to provide some personal information when registering.
To complete your registration, you will have to answer some questions about your experience as an investor.
But don't feel intimidated, it is not a test that you have to pass. The only intention is to know more about you and be clear about which financial instruments they should suggest according to your knowledge and experience.
When you fill in all your information in your profile, the annoying “incomplete profile” bar will disappear.
Next, we will talk about the fundamental sections of the page.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. Just click the tab and you will be able to set it. This is perfect in case you want to buy a security that is falling but you believe it will decrease more to a certain point.
“News Feed” is for social purposes and interaction. This is the section where users can share opinions and information.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. As we mentioned in this guide, the financial instruments that eToro offers are:
- Exchange-Traded Funds
- Raw materials
- Index funds
The concept “social trading” makes sense in the section “People”: that is where you can duplicate the strategies of the best investors. You'll be able to see all their profiles and historical performances.
You can search for those users that you find more interesting: by average profits, market or risk level, for instance. Just indicate the amount you want to invest and eToro will be in charge of replicating the movements of the selected investor, in proportion. This means that if you have $ 1000 and the trader puts 10% in an asset, eToro will invest also 10% of your money (that is, $ 100) in that same asset.
Finally, there are three main types of CopyPortfolios: Top Trader, Market, and Partner.
The benefit of using CopyPortfolios instead of copying individuals is that this way the risk will be more diversified. There are all kinds of portfolios that you can identify easily and are classified by sectors. Therefore, if you think a specific sector, like fashion or healthcare, has good chances to succeed, you can look for that specific portfolio and invest.
Do you know what “social trading” is?
eToro is a pioneer in social trading, it was the first broker to propose it. Since then, a multitude of copycats have appeared, but eToro is definitely the best.
But it wasn't just about creating yet another social network to talk about investment. The main achievement was in the possibility for users to replicate the moves of advanced investors, and to reward the latter for their ideas and knowledge.
When you access eToro you will see in the left menu the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are a kind of portfolio that includes a number of different assets of the same market. For instance, if you consider that a particular sector will succeed in the near future but you don't know which stocks to invest in, you just have to select a portfolio that groups together a variety of related companies in that industry.
CopyPortfolio has generated a 100% profit in the last twelve months, and you just need to click on “Invest”, enter the amount, place the stop-loss, and the rest will be done practically on its own.
But it is also possible to copy other successful investors of the site. With “Copy People” you can find them and imitate their moves easily.
You will see in the profile of users: the type of financial instruments they trade with, their risk profile (a higher risk implies more chances of earning more or losing more money), as well as their performance history.
Copying other people's investments can be very interesting and helpful, but I also suggest taking advantage of the platform's community to read other users and learn from them. It is great for acquiring important knowledge, especially if you intend to turn investing into a lifestyle.
There are different methods or ways for crypto trading, like day trading or buying and holding, for naming just a few.
In case you are just beginning in the world of investment, I suggest something in between: when you open your position, place a dynamic stop loss 15-20% below the maximum price, and let the rest happen on its own.
Therefore, if for example you acquire a cryptocurrency at $ 10, it rises to $ 20, and after that it decreases to $ 12, your stop loss will close your position at $ 16-17 and you will have earned a decent profit.
It might sound way better to sell when the price is at its peak, right before corrections, but that is simply not possible. The above strategy is much more realistic and it can give great results.
Eventually, you will be ready for applying advanced trading strategies, such as using leverage or going short to profit from bear markets.
How to use leverage in trading
Do you know what leverage is? We'll put it simply: trading allows you to invest higher amounts than what you really have. That is, if you enter with $ 100 and you use x2 leverage, you will be really investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for example, you are positive that Qualcomm price is going up, and that you have $ 1,000 for “going long”, you must know that you have the option of investing more and making more money.
You could consider asking for a credit at your bank, but it is a process that takes time, and by the moment you finally get the money, Qualcomm might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Using leverage, you can obtain that amount of money just by moving a finger. It's like borrowing money, but much easier and quicker, and with the benefit that you will be getting it directly from eToro. Before trading, you will be able to choose between the different leverage options as in the screenshot:
Trading with other assets allows you to use more leverage. This is because cryptocurrencies are a value that is invested in the medium-long term. However, leverage is used primarily for short-term operations or day trading. That said, I'm going to explain better how leverage works.
If for your investment of $ 1,000, you use leverage x2, you will be investing $ 2,000, as we mentioned. eToro would be “loaning” you the extra $ 1,000.
A week later Qualcomm price rises up by 20% and now your investment costs 2,400. So, a wise decision is to sell them back now.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 was yours initially, so the net profit is $ 400.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
But there's always a drawback. If everything goes ok and the asset increases, you will make money. On the contrary, if the price falls, you will also lose more money really fast.
For example: if the price falls by 10%, you won't lose $ 10, but $ 20, because of the leverage. That is why the concepts of Take Profit and Stop Loss are crucial when operating with leverage.
Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price.
If you purchased Qualcomm shares at $ 100, you can ask eToro to close once it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps rising, which could be a mistake.
On the other hand, when using leverage you should always use Stop Loss, because a small fall in the price of an asset can lead to a substantial loss. Always remember to set a Stop Loss more tight than that suggested by eToro.
Frequently asked questions
* 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.