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How to buy
If you live in Ireland, a great way to invest in Walmart 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 our 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.
Then check your email inbox: you should have received an email from eToro, click on the link 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 Walmart rising while you wait for your transfer to be done.
How to make your first trade
When eToro has confirmed the receipt of your credit, you just have to search for “Walmart” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
Is Walmart a buy?
Walmart, founded in 1962 by Sam Walton, is an American company that owns chains of discount department stores and warehouse clubs. Its main business is the retail sale of mass consumer goods of all kinds.
Its founder, created the company to offer quality products at very low prices in order to obtain a large volume of trade. The idea was to compensate precisely for the low prices so that the company could sustain itself and generate profits.
His idea paid off immediately, because from the very first year, Walmart had a large volume of sales that increased year after year. And along with its sales volume, what also grew year by year was the number of stores the company owned.
Thus, with such a simple business idea, Walmart went from being a warehouse in Arkansas with a few employees, to owning more than 10 thousand stores represented in some 60 different brands in 28 countries and with about 2.2 million employees worldwide.
And this without changing its business model, which is still the same today: sell cheap to sell more. Although what it has done is to reach agreements with manufacturers to provide it with products to market under its own brands.
Walmart and the stock market
The company has been listed on the New York Stock Exchange NYSE since 1970 and since then, as the company's growth and expansion, its share price has not stopped growing. Especially in the last 10 years, when it has experienced a bullish rally regardless of the state of the economy.
Although the truth is that this is very predictable since it is a company that generates and increases its profits year after year. And behind this is the fact that their main source of revenue is what they call “groceries”, which are food products.
Knowing a little of its history and with the awareness that food products will always be the first necessity, it is easy to foresee that Walmart's behavior will remain the same in the future, that is to say, in frank growth.
Therefore, if you are looking for companies to invest in that have a good track record of performance and excellent future prospects, Walmart is one of the companies to consider.
How to deposit funds on eToro
Among the payment methods that you will find on eToro are: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. There is not much to say here: making a deposit with eToro is really simple. Just go to “Deposit funds”, type the amount and select a payment method from the previous ones.
Evidently, for security policies, you should be the account or credit card holder.
The lowest amount is $ 200, and there is a maximum allowed if you are not verified, so if you plan to operate with higher amounts, you should verify your account first.
eToro accepts deposits in any currency, but you will have to pay a fee for the conversion to USD. That is why we suggest, if it is in your hands, using USD directly.
About Contracts for Difference
You probably have found the acronym CFD now and then if you entered eToro before. We will explain exactly what this means, but first, you should know that cryptocurrency trading on the platform is only CFD when you go short or leverage higher than x2 (nevertheless, the platform does not even allow this).
We will also refer to terms such as short-selling and leverage, in case you are thinking about day trading cryptocurrency or other more advanced operations.
eToro allows you to bet both “in the black” and “in red”. In a hypothetical case: you are sure that the Walmart will go down, so perhaps you consider that the best thing to do is refrain from getting in until it actually falls. But if it actually falls, you can make some profits out of that.
The practice known as “going short” will allow you to do that. It works, roughly, this way:
- They lend you, for example, 100 units of Walmart, with a total price of $ 5,000 (these are completely made up figures)
- Then, you earn $ 5,000 by selling them at their price in the market
- The price is reduced, as you guessed, and the unit of Walmart goes from $ 50 to $ 30
- You get the 100 units again, but their total current value is now $ 3,000
- Then you pay back the 100 units
- You save the $ 2000 difference!
It is far more simple than it may seem. Just remember that by trading in Walmart on eToro, with CFDs you can make a profit when you anticipate downs.
How are CFDs and futures different?
How are CFDs and Futures different?
- Futures: the exchange is made with someone else, another investor.
- CFDs: the operations are not made with another individual, but the counterparty is the brokerage platform.
- Futures: there is an expiry date. When that moment arrives, the contract is closed even if you are in losses.
- CFDs: there is no expiration date. You can wait for your position to rise before closing.
- Futures: there are fewer options for investment
- CFDs: you have plenty of options to choose from, there are CFDs of practically anything
- Minimum investment amount:
- Futures: you have to invest much more
- CFDs: very low
- Cost of trading and fees:
- Futures: as you have to invest more, costs are lower
- CFDs: higher (although not excessively)
- Use of leverage:
- Futures: absent leverage
- CFDs: accessible leverage
How does leverage work
In case you still don't know what “leverage” is, we'll describe it briefly: it is the possibility to invest a higher amount than you actually have. For example, you can enter with $ 100, but if you use x2 leverage, you will be investing $ 200.
What you need to know about leverage
Assuming that, for instance, you are positive that Walmart price is going up, and that you have $ 1,000 for “going long”, you should know that you have the option of investing more and making more money.
You could consider requesting a loan, but you must know that all the process takes time, and when you receive the money, Walmart might be already so expensive that investing wouldn't be convenient anymore.
With leverage, you can get that amount really easily. It's just like borrowing money, but much easier and quicker, and with the advantage that you will be getting it directly from eToro. It is simple, before investing you will see the different options as in the image below:
With other assets, the leverage you can choose is higher. The reason: leverage is regularly for short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's deepen a bit more on how all this works:
- If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro).
- A few days later, Walmart price does rises, as you thought, and now the cost of your investment is $ 2,400 (20% more), so you decide to sell back.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours initially.
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is quite good.
But not everything is wonderful. If everything goes ok and the price goes up, you will make money. However, if the asset decreases, you will also lose more money really fast.
Let's suppose that the price didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but $ 40, because of the leverage. That is why 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 Walmart shares at $ 100 and you ask eToro to close your operation as soon as the price reaches $ 120. It is very useful to avoid being blinded by enthusiasm: a 20% profit is usually very good, but once you see the price has risen, you might want to gain a bit more and decide to wait, but this could be a mistake. So, Take Profit helps you to trade more safely.
Stop Loss is even more necessary, especially if you trade with leverage, since a reduced loss with leverage can be tragic for your wallet. Consider that eToro will recommend a limit for Stop Loss, but it is better to place it lower than that.
There are several methods to operate cryptocurrencies: for example, you can buy and hold, or you can day trade (taking advantage of price fluctuations).
In case you don't have much experience in investment, my suggestion is a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work on its own.
For example, if you purchase a cryptocurrency when it is worth $ 15, it rises up to $ 25 and falls back to $17, the stop-loss will close your position at $ 21 or $ 22. Thus, you will get a satisfactory income.
It may sound more appealing to sell when the price is at its maximum, right before corrections, but that is simply not possible. The mentioned strategy is much more realistic and, well applied, it can work very well for you.
And when you have more experience, you can take your first steps with advanced investment techniques, like using leverage or going short to profit from bear markets.
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.