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How to buy
For those who live in Ireland, a great way to invest in Xiaomi 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 United Kingdom's Financial Conduct Authority (FCA).
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.
How to make your first trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Xiaomi” 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.
Xiaomi Corporation is a company of Chinese origin in the technology sector that manufactures and markets electronic equipment, the best known being its smartphones. But what really makes Xiaomi famous is the “value for money”, being Xiaomi itself that defines itself as “a global company that manufactures quality products at honest prices”.
It was founded in 2010 by Lei Jun and Lin Bin, with 2011 being the year when they launched their first smartphone in the Chinese market. This was the first big step of the company that from that moment on would have a history full of successes. And perhaps the first milestone was in 2013 when it surpassed Samsung and Apple in sales for the first time in China.
And since then, the company's commercial success internationally has been an outright affront to other smartphone manufacturing companies. Especially as Xiaomi's market share grows year after year, snatching space from Samsung and Apple.
The Xiaomi model
On several occasions, one of Xiaomi's founders (Lei Jun) has stated that the company prices smartphones only slightly above the manufacturing cost price. And it does this without sacrificing the quality of the components, offering a high quality product at low prices compared to other brands.
And this translates into a volumetric sales strategy, i.e., offering quality at a low price to sell more and thus make a good profit. This model, although it may seem simple and trite, has worked so well that its market share is growing by 16% annually. In the European market, this growth has reached more than 50%.
Despite this, and the fact that more than 90% of its revenue comes from the sale of mobile devices, the company continues to categorize itself as a software and internet company. This has generated criticism of Xiaomi from Samsung and Apple for “not generating innovation” in any area.
Depending on who looks at it, the latter may or may not be true. But what is absolutely clear is that Xiaomi offers equipment with the same features of high-end equipment from other brands at a price up to more than 3 times lower, which has guaranteed its commercial success.
Finally, Xiaomi does not use traditional advertising media and focuses on social networks. In addition to building customer loyalty so that they are the spokespersons of the brand. Very similar to what other brands do, isn't it?
The fact is that, regardless of the criticism, Xiaomi is an established company with a business model that has given it such strength that it is practically impossible for Xiaomi to disappear in the future.
What is leverage?
Have you heard about “leverage”? We'll put it simply: the good thing about trading is that it allows you to invest more money than what you really have. Let's say that you have $ 100 and you use x2 leverage, you will be actually investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for instance, you are certain that Xiaomi 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 go to your bank, ask for a loan, put an asset as collateral, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then acquire Xiaomi… However, when you finish doing all that, probably Xiaomi would be already much higher (if your prediction got confirmed), and investing wouldn't be a good idea anymore.
Thanks to leverage, you can get that amount of money just by moving a finger. It's just like borrowing money, but much better: from eToro itself. You can get financing to operate with much more money than you actually have on the eToro Wallet. It is simple, before investing you will see the different options as in the image below:
With other assets, the ability to leverage is greater. Why? Because cryptocurrencies are a value that is invested in the medium-long term, and leverage is used primarily for day trading or short-term trading. That said, I'm going to explain better how leverage works.
You begin with $ 1,000 and decide to use leverage x2, which means you would have $ 2,000 to invest (the extra $ 1,000 to reach $ 2,000 are “borrowed” from eToro).
A week later Xiaomi valuation goes up and now the value of your investment is 20% higher, which means, you have $ 2,400 in Xiaomi shares. But you don't want to be too greedy, so you decide, wisely, to sell back.
You will have to pay back the $ 1,000 of leverage and you will have made $ 400 (since the other $ 1,000 was your initial investment).
In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.
But watch out: if everything goes ok and the price rises, you will make money. However, if the price goes down, you will also lose more money really fast.
For instance: if the price falls by 10%, you do not lose $ 10, but twice (the leverage) that figure, that would be $ 20. That is why the terms “Take Profit” and “Stop Loss” are fundamental when using leverage.
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 Xiaomi shares at $ 100 and ask eToro to close your position automatically when it reaches $ 120. It is very helpful to avoid being blinded by enthusiasm: we would all accept a 20% profit when making the investment, but when you reach that 20% it is easy to ask yourself “what if this keeps increasing and it is a mistake to exit?”. It's like you made sure now of not acting recklessly in the 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). You always need to mark a Stop Loss more tight than that suggested by the platform.
There are several cryptotrading methods: from buying and waiting to day trading (and benefit from price fluctuations).
If you are new in the world of trading, my suggestion is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
This means that if, for example, you buy a cryptocurrency at $ 10, it reaches $ 20, and after that it decreases to $ 12, your position will be closed at $ 16-17 and you will make a pretty good profit.
I know it's tempting to look to sell when the cost is at its highest, but that is simply not possible. The mentioned method is much more realistic and it can give great results.
Later on, you will be able to apply more sophisticated techniques, like short-selling or using leverage.
Virtual portfolio: How does it work?
For those who still don't have much experience in investing, using a demo account can be very helpful. Just make sure the virtual mode is set and you can start practicing with an “imaginary” balance.
A virtual portfolio can help you to practice and gain experience before starting to trade with real money. When you create your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on eToro (not only with Xiaomi).
The first attempt is not usually that good. But you can ask support to deposit back the virtual $ 100k to your account, and the second try you should do better.
Take into account that trading is mainly about being cautious, however, using a virtual portfolio might have the opposite effect. It will never be the same as risking your own money.
And of course, the virtual mode is kind of absurd if you want to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years to see the outcome. Virtual accounts may be ideal for trying out short or medium-term operations.
How does eToro work?
As we have referred among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can trade without having to read endless explanatory texts.
If you are familiar with any of the most popular social networks today, like Twitter or Facebook, you can perfectly manage eToro's interface.
We will explain the registration process and the different tabs that you will see on the platform.
When you register, you will have to enter all the information that eToro asks for: first and last name, address…
During the sign-up process, you will also have to answer some questions about your previous trade experience.
But you don't need to worry: it's not about passing an exam. They are only measures to know how much knowledge you have and what type of assets they can suggest. For example, if you have never invested before, they will not suggest that you invest in futures.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's get to know the fundamental sections of the platform.
“Set Price Alerts” allows you to set alerts on the price of certain securities. This is very useful when you are after an asset that is falling, but perhaps you think that it has not finished falling yet.
In “News Feed”, investors interact and share opinions, tips, and other valuable information.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. As we discussed in this guide, the types of financial instruments that eToro offers are:
- Index funds
In the tab “People” are all the profiles and historical performances of other users, and you can replicate their strategies with just one click. This is where the “social trading” concept is best applied.
You can search for those users that you find more interesting: by risk level, types of financial assets, average earnings… You just have to type the amount of your investment and eToro will be in charge of replicating the movements made by the investor you selected, in proportion. This means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your money in that asset.
Finally, you will see in this section the popular CopyPortfolios. There are three types: Top Trader, Market, and Partner.
The advantage of using CopyPortfolios instead of copying individuals is that this way the risk is more diversified. There are all kinds of portfolios that you can find easily and are classified by sectors. Therefore, if you think a specific industry, like gaming or oil, will prosper in the future, you should probably look for that specific portfolio.
Do you know what “social trading” is?
The first platform that conceived trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also taken this concept, but we have tried them all and eToro is way better.
But it wasn't just about creating yet another social network to talk about investment. The real innovation was in allowing users to copy the strategies of experienced traders, who were in turn paid for their ideas.
Perhaps it sounds complicated, but it is actually very simple. When you enter eToro you will see in the left menu the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are a kind of portfolio that bundles a number of financial assets in a certain sector. For instance, if you anticipate 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 includes a variety of related companies in that industry.
You should know that in the last year, CopyPortfolio has given returns of 100%. And you can benefit from it just by choosing a portfolio, enter your chosen amount, place the stop-loss order and click on the “Invest” button.
But you can also copy other users of the platform who are successful investors. With “Copy People” you can locate them and imitate their moves easily.
In the profile of each user, you will see their risk profile (the higher the risk, the more chances of winning more and losing more), their performance, and the type of instruments they trade..
Replicating strategies from others can be very interesting and helpful, but it is also a good idea to take advantage of the community to read other users and learn from their experience. It is a great source of information and knowledge, especially if you intend to turn investing into a lifestyle.
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.