How to invest in Google from Nigeria

Is Google a buy?

Google is the most used search engine and the most visited website worldwide, performing an average of three billion searches per day. But it is also one of the largest software and electronic services companies in existence for a long time.

Like other Internet companies, Google was born as a university project in 1996 by students Larry Page and Sergey Brin. Two years later, in 1998, the two founded the company Google Inc. and the search engine was launched on September 27.

At that time, it was just a search engine with an infrastructure of 80 servers in a closet. However, its initial success was so great that by the year 2000 it had already displaced the most popular search engine at the time, AltaVista.

Since then, Google has only grown to become the technological giant we know today. From just a search engine and generating revenue from internet advertising, Google evolved to offer a wide variety of services among which we can mention:

  • YouTube
  • Google Chrome
  • Android OS

And we mention these because they are the ones that generate the most revenue for Google, revenue that comes from the advertising model that we all know. But there are also lesser-known projects that also generate revenue to the company, such as Google Drive, Workspace or Cloud.

Future projects of Google

Being a technology company, Google remains in a process of continuous research and development that sustains its success in the market. This is how Google has a laboratory known as Google X in which it works on new technologies.

In this laboratory, Google develops technology that may seem futuristic, such as the Smarty Pants, which are robotic pants controlled by artificial intelligence that will help people with reduced mobility.

Following the futuristic line, we can also mention the Wolverine project. In this case it is a device that would improve the hearing of any person. You will probably think that there is nothing futuristic about this, but the magic lies in the device's ability to focus on a particular speaker in a crowded environment.

These are projects that are ongoing, but to mention something more rational and company-related, there is the Taara project. This project seeks to bring the Internet to everyone using beams of light instead of wires. And according to the company itself, this technology is the only one that has the potential to surpass Google Fiber.

This is the way Google has kept growing over and over and that has allowed it to remain in the group of the big five of technology, along with Facebook, Amazon, Microsoft and Apple.

What types of instruments can you trade?

What is an ETF?

Exchange-Traded Funds or ETFs are a type of passively managed fund, similar to index funds. They can be described as a merge between stocks and mutual funds. They are traded in the market like stocks, during the day. But their advantage is that they offer more alternatives compared to stocks, and the rates are much lower than those of an actively managed fund.

Index Funds

This is the best option for people who can invest in the long term, mostly for those who are starting to trade, because it is less expensive, diversified, and safer.

Contrary to what it may seem, very few investors can beat the benchmark (although you have probably heard of investors who achieve huge returns).

But except for Warren Buffett and a couple more, not everything is as good as it sounds: when someone brags about having beaten the index, it was probably for a short time, or their rates are really high. Besides, take into account that if something happened in the past it doesn't mean necessarily that it will happen again in the future.

With index funds, you won't be concerned about that: most of the time, they beat active managers in the long term, and the charges are so much lower.

What are CFDs?

It is possible that you have found the initials CFD now and then if you entered this broker before. We will explain exactly what this means, but you should know first that CFDs on this broker are only possible when you short sell or select leverage over x2 (but this is not even an option on the platform).

In case you want to try at some point day trading cryptocurrency and other advanced practices, next we will also explain terms such as leverage and “going short”.

this broker allows you not only to bet “in the black”, but through CFDs you can also bet “in negative”. Let's say that you believe that the Google will fall, so perhaps you consider that it is better to refrain from getting in until it actually falls. But if it really falls, it might mean extra money for you.

You can do that by “going short”. Here's how it works:

  • You ask for a loan of, let's say, 100 units of Google, which total price at the moment is $ 5,000 (these numbers are made imaginary)
  • You sell them at their price at the moment, $ 5,000
  • The Google goes from $ 50 to $ 30 (as you thought, it devaluates)
  • You get the 100 units again, but at their current price, $ 3,000
  • Then you return the 100 units
  • The difference is yours, so, you will have made $ 2000

It is really simple. Just bear in mind that by trading in Google on this broker, you can earn money if you foretell downs in the price.

Leverage: more risk, more gains

Do you know what leverage is? Just in case, we'll put it simply: trading lets you invest even more than what you really have. That is, if you have $ 100 and you put them with x2 leverage, you will be actually investing $ 200.

Why using leverage and how to do it

Assuming that, for example, you are certain that Google price is going up, and that you have $ 1,000 for “going long”, you must know that you can increase your investment and earn higher profits.

There's the possibility of asking for a credit at your bank or other financial company, but you must know that all the process takes time, and when you receive the money, Google might be already so expensive (if your guess was right) that trading wouldn't be convenient anymore.

Using leverage, you can get that amount really easily. It's exactly like borrowing money, but much better: from the broker itself. You will be able to operate with much more money than you actually have on the platform. Before trading, you will how much leverage to use as in the image:

apalancamiento

With other assets, you can use more leverage. Why? Because cryptocurrencies are a value that is invested in the medium-long term. However, leverage is used especially for short-term operations or day trading. Let's talk a bit more about how leverage works.

If you have the $ 1,000 and choose leverage x2, you will be investing $ 2,000, as we mentioned. The broker would be “loaning” you the extra $ 1,000.

A couple of days pass and turns out that you were right: Google price raises its price by 20% and your money has appreciated reaching $ 2,400. Ok, don't be greedy, let's sell.

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).

By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.

It may sound too good to be true. The thing is, you can also lose. If everything goes as you planned, you will earn more money in less time; but if the value of the asset goes in the opposite direction, you will also lose more in less time.

For example: if instead of increasing by 20%, the price falls by 10%, you do not lose $ 10, but twice that figure, which means $ 20. Therefore, when using leverage it is crucial to take into account Take Profit and Stop Loss.

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 bought Google shares at $ 100, you program the broker to close when it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps going up, which could make you lose it all.

Stop Loss is even more necessary, especially when trading with leverage, since a small loss could have a significant impact. You always need to mark a Stop Loss more tight than that suggested by the broker.