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How to buy
If you live in Ireland, a great way to invest in Johnson & Johnson shares is, without any doubt, 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 Ireland, 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 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 trade
As soon as 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.
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.
About Contracts for Difference
If you browsed eToro previously, you probably noticed that the initials CFD appear frequently. We will explain exactly what this means, but you should know first that cryptocurrency trading on the platform is only CFD when you short sell or select leverage higher than x2 (although the platform does not even allow this).
We will also refer to concepts like going short and leverage, in case you are interested in day trading cryptocurrency or more advanced operations.
eToro allows you to bet both “in the black” and “in negative”. For instance, you are sure that the Johnson & Johnson will go down, so you clearly think “if it is going to depreciate or go down, I'll just wait until it does and then I'll bet”. However, if it actually goes down, you can make some profits out of that.
You can do that by “going short”. Here's how it works ,roughly:
- Someone lends you, for example, 100 units of Johnson & Johnson, valued at a total of $ 5,000 (these are completely made up numbers)
- You sell the 100 units at $ 5,000
- As you presumed, the price falls, and the unit of Johnson & Johnson now costs $ 30 instead of $ 50
- You obtain the 100 units again, but at $ 3,000
- Now you return the 100 units
- The rest is yours, so, you will have earned $ 2000
It is far more simple than it may seem. Just keep in mind that by trading in Johnson & Johnson on eToro, you can make a profit if you anticipate downs in the price.
How are CFDs and futures different?
How are Futures and CFDs different?
- Who is the counterparty? In the case of Futures, the counterparty is another investor. In CDFs, it’s the broker (eToro)
- Date of expiration Futures expire in a variable given date, while CFDs don’t expire
- Markets available for trading: Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit: Being higher numbers, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher.
- Is it possible to leverage? with Futures, it isn’t possible; while with CFDs it is.
How to use leverage in trading
Do you know what leverage is? Just in case, we'll define it simply: trading lets you invest more money than what you really have. For instance, if you have $ 100 and you use x2 leverage, the amount of your investment will be $ 200.
About leverage, Take Profit and Stop Loss
Let's say that you have complete certainty that Johnson & Johnson will raise its price, and you want to “go long”, but you only have $ 1,000 available. However, you have the option of investing more money and earn higher profits.
You could consider asking for a loan, but it is a process that takes time, and when you receive the money, Johnson & Johnson might be already so expensive (if your guess was right) that trading wouldn't be convenient anymore.
Using leverage, you can obtain that amount of money with two clicks. It's exactly like borrowing money, but much better: you will get it from eToro, which allows you to invest much more than you have on the platform. Before trading, you will how much leverage to use as in the image:
With other assets, the leverage you can use is higher. The reason: leverage is regularly for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works.
If you have the $ 1,000 and use leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro would be “loaning” you the extra $ 1,000.
A few days later, as you thought, Johnson & Johnson price raises its price by 20% and the value of your investment is now $ 2,400. Ok, don't be greedy, it's time to sell.
You need to pay back the $ 1,000. You 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.
But there's always a downside. If all goes as you intended and the asset increases, you will make profits. On the other hand, if the price goes down, you will also lose more money than you invested.
Supposing that the price didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but double, $ 40. For that reason, the concepts of Take Profit and Stop Loss are fundamental when using leverage.
Take Profit is the automatic sell order that is above the entry price: you buy Johnson & Johnson shares at $ 100 and you ask eToro to automatically close your position as soon as the price reaches $ 120. It is very helpful to avoid being blinded by greed: we would all accept a 20% profit in the beginning, but when you reach that 20% it is easy to want higher profits and risk losing it all. It's like you made sure now of not acting recklessly in the near future.
Stop Loss is even more necessary, mostly if you use leverage, since a small loss with leverage can have a significant impact on your wallet. Consider that eToro will recommend a limit for Stop Loss, but it is better to set it lower than that.
What are the instruments you can trade in eToro?
You already know about criptocurrenciesstocks, there are way more financial assets available in this broker.
Have you heard about Exchange-traded funds? They are passively managed funds, known for merging the advantages of stocks and mutual funds: they can be exchanged regularly at market price, but have much more investment possibilities and considerably lower fees.
This is the best option for people who can invest in the long term, mostly for beginners, because it is inexpensive, diversified, and the risk is lower.
You may have a different idea, but very few fund managers can beat the benchmark (yes, you have surely heard of investors who obtain huge profits).
But besides Warren Buffett and a couple more, all that glitters is not gold: when someone brags about having beaten the benchmark, it was probably for a limited time, or their fees are really high. Besides, past performances do not ensure a future one.
The good thing about index funds is that they solve those two issues: their commissions are insignificant and in the long term they tend to beat active managers.
Forex or currency trading is the exchange between a pair of currencies in order to gain money through the operation.
If you decide to trade EUR and USD, for example, you purchase euros and pay with dollars, hoping that after obtaining the first currency (the euro) it will increase compared to the second (the dollar), to make a profit by selling it. Suppose you entered when the price of one euro is 1.10 USD and you exit when a euro is worth 1.15: that difference is yours once you make the operation.
You may be thinking that operating with currencies requires high investments, and you're right, since variations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. If you are just starting to trade, it is not a good idea to begin with this market, because it is very risky and intricate.
eToro allows trading with the most common currency pairs but keep in mind that in this market sales are always made through CFDs, therefore you will not be the owner of the real asset.
How to deposit funds on eToro
When it comes to depositing funds on eToro, there is not much to say, since it is really straightforward. Just click “Deposit funds”, type an amount, and choose the payment option you prefer. You can use PayPal (available for some countries), bank transfer, credit card, Skrill, or Neteller.
Evidently, for security reasons, you need to be the account or credit card holder.
You can start with a $ 200 deposit, and if you are not verified you will have a maximum amount allowed. Thus, if your intention is to deposit larger sums, you will need to verify your account previously.
The platform allows deposits in any currency, but charges a fee for making the conversion to USD. So it is better to use USD from the beginning.
How does a demo account work?
In case you do not have much experience as an investor, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional money is very simple.
This option is ideal for those who are new to this world and want to put their talents to the test before playing for real money. When you create your account, you will start with $ 100,000 of virtual balance to do your trades, not only with Johnson & Johnson, but you can also work with a diverse portfolio with all the different instrument that are available on eToro.
The first attempt is not usually that good. But you can ask support to replenish the virtual $ 100k to your account.
But keep in mind that you need to be prudent for trading, and demo account trading can have an adverse effect. It is not the same to risk your own money than to operate with a false balance that you don't mind losing.
Finally, if you are interested in trading in the long or medium-term, there is no point in using the virtual mode and having to wait for years. On the other hand, it can be very useful if you want to practice short and medium-term investment.
How does eToro work?
We said previously that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.
You won't have any problems with the interface if you have used any of the most common social networks.
We will explain, roughly, the registration process and the different sections that you will find.
When you open your account, you will have to fill in all the information that eToro asks for: first and last name, address…
Before you end up with the sign-up process, you will also find some questions about your previous trading activities.
But don't feel like you are taking an exam. They only intend to find out about your previous experience and knowledge to know which instruments to recommend for you.
You will see a bar that says “incomplete profile” until you fill in all the information.
Let's see what the different sections of the site are.
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.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. As we mentioned previously, the six types of instruments on eToro are:
- Raw materials
- Index funds
In the tab “People” are all the profiles and historical performances of other users, and you can replicate their movements with just one click. This is where the “social trading” concept is best applied.
In this section, you will be able to search for those traders that you find more interesting. When you select an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, in proportion. For instance, if you have $ 1000 and the user puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same asset, in this case, $ 200.
You will also see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
The advantage of using CopyPortfolios instead of copying individuals is that this way you will diversify the risk. There are all kinds of portfolios that you can find easily and are divided by sectors. Therefore, if you suspect a specific industry, such as e-commerce or drones, will prosper in the future, you can find that specific portfolio and invest in it.
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.