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How to buy
If you live in Kenya, the best way to invest in Walmart 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 Kenya, 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 trade
As soon as 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.
*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 Walmart do?
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.
Why we advise to use this broker for buying Walmart shares in Kenya?
- Allows to learn from other trading moves
- Allows you to short sell
- It's uncomplicated and user-friendly
- Leverage is allowed
- There are lots of investment opportunities
Official homepage: www.etoro.com *
You should consider eToro in case you are interested in investing in Walmart from Kenya.
eToro is well-known for making “social trading” fashionable, an innovative form of investing in which users can imitate the techniques of other traders who have been generating profits over time.
If you are a beginner or do not have much investment experience, eToro is great for you, since it puts your investment on automatic by repeating strategies from those who have been doing it for years and making profits. And for those skilled investors willing to share their techniques with others, eToro rewards your knowledge with money.
Another advantage is how manageable the platform is, which turns out perfect for new users that are learning all about the trading world.
What are CFDs?
You probably have seen the initials CFD more than once if you entered eToro before. Before we come back to it, we must say that cryptocurrency operations on eToro are only CFDs if you are short-selling.
We will also explain terms such as leverage and “going short”, in case you are considering day trading cryptocurrency or more advanced practices.
With CFDs you can operate on the platform even if you are not “in the black” or having a negative balance. Let's say that you believe that the Walmart will go down, so you obviously think “if it is going to depreciate, I'll simply wait until it does and then I'll go in”. However, if you really think that it's going down, why not take advantage of that?
You can accomplish that by “going short”. Here's how it works:
- You get from a loan 100 units of Walmart, with a total price of $ 5,000 (these numbers are fictional)
- You sell the 100 units and earn $ 5,000
- The Walmart devaluates from $ 50 to $ 30
- Again, you buy the 100 units, but now they are worth $ 3,000
- Now you return the 100 units
- You keep the $ 2000 difference!
Keep in mind that it is much simpler than it sounds: we can just say that by trading in Walmart you can also make money if you anticipate it will fall.
Differences between futures and CFDs
How are Futures and CFDs different?
- Futures: operations are made with someone else, another trader.
- CFDs: the counterparty is the brokerage, in this case, eToro.
- Futures: they expire on a given date. Once the contract expires, it is closed and can't be reopened.
- CFDs: on the contrary, they don't expire. It is possible to get back to a good position before closing.
- Options for trading:
- Futures: options are much more limited
- CFDs: there is an enormous amount of options for trading
- Minimum deposit:
- Futures: you have to invest much more
- CFDs: you can get in with a lower minimum trade size
- Trading costs and charges:
- Futures: as you have to pay more in the first place, fees are lower
- CFDs: higher (although not too much)
- Futures: absent leverage
- CFDs: it is always possible to leverage
eToro payment methods
Within the payment methods that eToro accepts you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. Depositing money on eToro is so simple: click “Deposit funds”, type the amount and select your preferred method.
(Consider that you must be the account or credit card owner, for security reasons).
You can start from $ 200, and if you are not verified you will have a maximum amount allowed. Thus, if you aim to operate with large amounts, you will need to verify your account previously.
You can pay in any currency you want and eToro will automatically convert it to USD. Nevertheless, we suggest depositing directly in USD since the platform charges a fee for the conversion.
How to use eToro
We said before that eToro is very friendly and intuitive. Anyone can start using it without previous knowledge or long explanations.
Everyone who has used social networks like Instagram or Facebook, has enough skills to operate with the eToro interface.
We will explain, roughly, the registration steps and the different sections that you will see on eToro.
You will have to provide some personal information when registering.
Before you end up with the sign-up process, you will also have to answer some questions about your previous trade experience.
But don't feel intimidated, there is no right or wrong answer. They only intend to find out how much you know and which assets to recommend for you.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's get to know the different sections of the site.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. This is ideal in case you want to purchase a security that is falling but you believe it will decrease more to a certain point.
“News Feed” is the more “social” section. There, traders can interact and share their knowledge.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. As we discussed before, the financial instruments available on are:
- Exchange-Traded Funds
- Raw materials
- Forex trading
- Index funds
The term “social trading” comes to life within “People”: there, you can replicate the movements of any user you choose with just one click. You'll be able to see all their profiles and performances.
Using the search box, you can find the users that you find more interesting: by average profits, types of instruments or risk level, for instance. You just have to type the amount of your investment and eToro itself will replicate the movements made by the investor you selected, 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 advantage of copying to CopyPortfolios instead of specific investors is that this way you will diversify the risk. There are all kinds of portfolios that you can recognize easily and are divided by sectors. Thus, if you suspect a specific industry, like e-commerce or healthcare, will prosper in the future, you should look for that specific portfolio.
What is social trading?
The first platform that conceived trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also adopted 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 main achievement was in the possibility for users to replicate the strategies of advanced investors, who were in turn paid for their ideas.
When you access eToro you will see in the left menu the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of assets of the same 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 groups together a variety of related companies in that industry.
At the time of writing this text, this CopyPortfolio has generated a 100% profit in the last twelve months, and you just need to click on “Invest”, choose 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 platform. It is really easy: you can find them with “Copy People” and just duplicate their strategies.
You will find in the profile of users: the type of assets they operate with, their risk profile, as well as their trading history.
And although duplicating other people's investments can be very useful, you should also make the most out of the platform's community, read what other users think, and learn from them. If you intend to end up living from trading, it is a good place to acquire valuable knowledge.
There are different methods or ways for crypto trading, like buying and holding or day trading (and using market volatility to your advantage), for naming just a few.
My suggestion for those who are beginning to trade is something in the middle: when you open your position, set a stop-loss 15-20% below the highest price, and forget about the operation.
For example, if you buy a cryptocurrency at $ 15, it rises up to $ 25 and falls again to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Thus, you will get a satisfactory income.
It might sound more appealing to sell when the price is at its maximum, right before corrections, but that is simply not possible. The mentioned method is much more down-to-earth and it can give great results.
At some point, you will be ready for more advanced trading techniques, like using leverage or going short.
How to use leverage in trading
Have you heard about “leverage”? Just in case, we'll put it simply: the good thing about trading is that it lets you invest more money than what you really have. Let's say that you have $ 100 and you choose to leverage x2, the amount of your investment will be $ 200.
About leverage, Take Profit and Stop Loss
Assuming that, for example, you are certain 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.
There's the possibility of asking for a credit, but you must know that all the process takes time, and when you receive the money, Walmart might be already so expensive (if your guess was right) that trading wouldn't be convenient anymore.
Leverage is like a credit, but it is only a few clicks away! You will be able to invest (and earn) much higher amounts than what you actually have on the platform. Before trading, you will find the leverage options as in the screenshot:
Trading with other assets allows you to use higher leverage. This is because cryptocurrencies are usually medium-long term investments, and leverage is used mainly for day trading or short-term trading. Let's talk a bit more about how leverage works:
- If you want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro).
- Then, turns out that Walmart price does increases, as you assumed, and now the price of your investment is $ 2,400 (20% higher), so you decide to sell back because you want to play it safe.
- Once the $ 1k from leverage is deducted, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours initially.
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 all goes as you intended and the asset increases, you will make money. However, if the asset decreases, you will also lose more money really fast.
Let's suppose that the asset didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but $ 40, because of the leverage. Therefore, when using leverage it is very important to know about Take Profit and Stop Loss.
Take Profit is the automatic sell order that is above the entry price: you buy Walmart shares at $ 100 and you ask eToro to automatically close your operation as soon as the price reaches $ 120. It is very helpful to avoid being blinded by greed: a 20% profit is usually very good, but once you see the price has risen, you might think you can make higher profits, which is not always the case. As a result, you might lose money if you don't close on time. So, Take Profit helps you to trade more safely.
Stop Loss is even more important, mostly if you use leverage, since a reduced loss with leverage can have a significant impact on your wallet. That is why it is essential to establish a Stop Loss more conservative than that suggested by the platform.
* 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.