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How to buy
If you live in Philippines, a great way to invest in Coca-Cola 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 Philippines, 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
When eToro has confirmed the receipt of your credit, you just have to search for “Coca-Cola” 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.
Contents
What does Coca-Cola do?
The Coca-Cola Company is the U.S.-based transnational corporation that produces and markets the Coca-Cola beverage. Although more properly, the original Atlanta-based company produces concentrated syrup which it distributes to bottlers around the world.
Coca-Cola's history
In the year 1886, the pharmacist John Pemberton sought to produce in his laboratory a medicine for stomach problems. It was then that he produced and began to market a drink that combined coca leaves and kola nut at 5 cents per glass.
Soon, Pemberton's drink became a success and his accountant, Frank Robinson, came up with the name Coca-Cola and the logo. In 1891, together with another pharmacist named Asa Candler and his brother, as well as the accountant, The Coca-Cola Company was founded. And two years later, in 1893, the trademark was registered at the Industrial Property Registration Office.
In 1897 Coca-Cola exit the United States for the first time and in 1989 the first agreement was signed to bottle Coca-Cola for the entire North American territory. According to this agreement, The Coca-Cola Company would produce the concentrated syrup and the bottlers would make the beverage and would also be in charge of sales and distribution.
Coca-Cola's business model
We already know that The Coca-Cola Company produces the concentrated syrup that it distributes to bottlers around the world. What we have not mentioned is that the bottlers operate as a franchise system, but with exclusive territories.
Thus, in Latin America there is only Coca-Cola FEMSA and in Western Europe Coca-Cola European Partners. This is just to give an example, since there are other bottling companies that make sure Coca-Cola is present all over the world.
With this simple model, Coca-Cola went from being a beverage in a pharmacy to the largest and best known beverage company in the world. To the point that on average, everyone sees at least three Coca-Cola advertisements every day.
Best of all, Coca-Cola's marketing is always a marvel. Although it also makes use of popular beliefs such as its unknown formula that supposedly only two people in the company know about. Or the fact that it contains coca leaves in its formula.
About this we can say that it is impractical and almost impossible that only two people know the formula in such a big company. Besides, it is known that in 1903 coca leaves were replaced by caffeine, so no, it does not contain coca leaves.
And from all this what can be concluded is that, just as humanity will not stop growing, Coca-Cola will not stop growing either.
Advantages:
- There are uncountable products you can invest in
- You can leverage
- User-friendly and straightforward
- It offers techniques and moves from skilled investors so you can copy them
- Admits short-trading
Official website in English: www.etoro.com *
In case you are considering it, eToro is probably the best option nowadays to acquire Coca-Cola shares from Philippines.
“Social trading”, a relatively new form of investing by replicating techniques and moves from other experienced investors, has become trendy because of eToro.
eToro has solutions for you, especially if you don't have much experience in trading. You can rest assured that you will be making a smart investment since the site emulates those from subjects with a great deal of expertise. On the contrary, if you are an investor and want to share your knowledge with others, eToro pays up for it.
Another thing to mention is how manageable the platform is, which turns out perfect for new users that are learning all about the trading world.
How to deposit funds on eToro
When it comes to payment on eToro, there isn't really much to say, since it is pretty simple. You only need to select “Deposit funds”, set an amount, and choose the payment option you prefer. You can use PayPal (available for some countries), bank transfer, credit card, Skrill, or Neteller.
Of course, keep in mind that for security reasons, you need to be the account or credit card holder.
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. So, if your intention is to deposit larger sums, you will need to verify your account previously.
Also, remember that you can make the deposit in any currency you want because eToro will make the conversion automatically to USD, although it charges a fee, so it is preferable to make the transfer directly in USD.
How do Contracts for Difference function?
You probably have seen the initials CFD all the time if you already accessed eToro. We will come back to it, but first, you should know that CFDs on eToro are only possible when you are short-selling.
We will also explain concepts such as leverage and “going short”, in case you are considering day trading cryptocurrency or other more advanced operations.
eToro allows you not only to bet when you are “in the black”, but with CFDs you can also bet “in negative”. For instance, you have the conviction that the Coca-Cola will go down, so perhaps it is obvious to think “if it is going to depreciate, I simply wait and I'll go in when it has gone down”. Nevertheless, if you are convinced that it is going down, why not making some profits?
You can do by “going short” which consists in something like this:
- They lend you, for example, 100 units of Coca-Cola, which cost $ 5,000 (these numbers are imaginary)
- Next, you get $ 5,000 by offering them at the market price
- The Coca-Cola devaluates from $ 50 to $ 30
- You purchase all 100 units one more time, but at the current price, $ 3,000
- You return the 100 units
- You save the $ 2000 difference!
Take into account that it is much easier than it sounds: we can just say that by trading in Coca-Cola you can also make money if you foretell it will go down.
What's the difference between CFDs and futures?
What are the main differences between Futures and CFDs?
- Counterparties
- Futures: the exchange is made with someone else, another trader.
- CFDs: the counterparty is eToro, the brokerage.
- Date of expiration:
- Futures: there is an expiry date. Once the contract expires, it is closed even if you have losses.
- CFDs: on the contrary, they do not have an expiry date. This means that you can wait until you get in a good position before exiting.
- Options for trading:
- Futures: it is very narrow
- CFDs: you have plenty of options to choose from, there are CFDs of practically anything
- Minimum investment amount:
- Futures: you need a larger initial investment
- CFDs: you can enter with a low amount
- Trading costs and charges:
- Futures: costs are usually lower
- CFDs: rates are higher
- Leverage:
- Futures: you can't leverage
- CFDs: existing and attainable
How does leverage really work
If you still don't know what “leverage” is, we'll put it short. When trading, it's the capacity of enlarging your investment without putting more money. For example, if you start with $ 100 and you leverage x2, your initial investment will be $ 200.
Leverage, Take Profit and Stop Loss
Assuming that, for example, you are sure that Coca-Cola price is going up, and that you have $ 1,000 for “going long”, you should 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, Coca-Cola might be already so expensive that trading wouldn't be convenient anymore.
Leverage is exactly like a credit, and you will only have to click a few times to get it! eToro allows you to invest (and earn) much more money than what you have on the platform. You will simply see the different options as in the image below:
When trading in different markets you can use more leverage. This is because cryptocurrencies are usually medium-long term investments. However, leverage is used mainly for short-term operations or day trading. Let's talk a bit more about how leverage works.
You begin with $ 1,000 and decide to use leverage x2, which means you would have $ 2,000 to invest, since eToro would put the other $ 1,000.
A week after that, turns out that Coca-Cola valuation goes up and now the value of your investment is 20% higher, which means, you have $ 2,400 in Coca-Cola shares. But you don't want to be too greedy, so you decide, wisely, to sell back.
You will have to give 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.
But not everything is wonderful. If all goes as you planned and the asset increases, you will make profits. However, if the asset decreases, you will also lose more money than you invested.
Supposing 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. Because of that, the concepts of 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 Coca-Cola shares at $ 100 and ask eToro to close your position automatically when it goes up to $ 120. It is very useful to avoid being blinded by greed: we would all take a 20% profit when investing, but when you reach that 20% it is easy to ask yourself “what if this keeps going up and it is a mistake to exit?”. It's like you made sure now of not acting recklessly in the near 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 lower than that suggested by the platform.
What kinds of instruments can you trade in eToro?
Besides criptocurrenciesstocks, there are more financial instruments you can trade .
Index Funds
If a long-term investment sounds like a good idea to you, and you won't need to withdraw your money in at least five years, index funds can be the best alternative. This type of investment is also great for beginners since it is more secure.
You may have a different idea, but very few investors can beat their benchmark return (although you have probably heard of managers who obtain huge returns).
But except for Warren Buffett and a couple more, all that glitters is not gold: if you hear of someone who has beaten the index, they have probably done so for a short period, or charges so many commissions that it ends up being better for you to index (whit minimal commissions). Also, take into account that past performances do not ensure a future one.
Index funds provide solutions to both concerns: their fees are insignificant and they beat active managers most of the time, although in the long term.
Commodity market
Most people invest in raw materials because of their stability. While other assets tend to fluctuate more, raw materials prices vary less and offer security against inflation or market volatility. However, prices are subject to supply and demand, so if an economic situation produces higher demand for a certain good, its cost will also go up.
Consider that raw materials don't pay dividends. Thus, the only potential further income would come from a future sale of the asset.
Raw materials are commonly classified into two kinds: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural goods such as coffee, rice, soy, or sugar.
Currency market
Forex or currency trading is the exchange between a pair of currencies in order to obtain a profit through the operation.
In case you want to trade euros and dollars, you buy euros and pay with dollars, with the expectation that the euro will raise its price compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when they are worth 1.20 USD, you'll be keeping that margin.
Perhaps you already deducted this, but trading with foreign exchange requires investing a lot, because prices rarely increase that much, or using much leverage, which is always a risk. Our recommendation for those starting in the world of trading is to choose another market to begin with, since Forex is not the safest.
You can trade with almost all well-known currency pairs on eToro but consider that in Forex trading sales are made through contract for differences, therefore the underlying asset won't be yours.
“Social trading”, an innovative concept
The first platform that conceived trading as a social activity was eToro, and the idea became successful really quick. Other brokers have also taken this concept, but eToro is way better.
But it wasn't just about creating yet another social network to talk about investment. The main innovation was in the possibility for users to copy the strategies of advanced investors, and to reward the latter for their ideas and knowledge.
You will find in the left menu of the page the options “Copy People” and “Invest in CopyPortfolios”.
CopyPortfolios
“CopyPortfolios” are types of exchange-traded funds or thematic index funds, a portfolio that bundles a number of assets in a certain sector. For example, if you heard that the gaming industry is going to succeed shortly but you don't have enough information (or time) to choose stocks, you just have to pick the CopyPortfolio called “InTheGame”, which includes companies like Microsoft, Google, Tencent, NVIDIA, Logitech, Intel, AMD, Nintendo, Ubisoft, Unity…
At the time of writing this article, this CopyPortfolio has generated a 100% profit in the last year, and it is as simple as clicking on “Invest”, select the amount, place the stop-loss, and the rest will be done practically on its own.
Copy People
The other option is to directly copy traders of the platform: in “Copy People” you can locate eToro users who are very successful investing and whose moves you can replicate very easily.
You will see in the profile of each user: the kind of assets they operate, their risk profile (a higher risk implies higher possibilities of earning more or losing more), and their trading history.
And although replicating other user's investments can be appealing, 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.
Trading strategies
There are several cryptotrading trategies: from purchasing and holding to day trading using price fluctuations in your favor.
In case you are a beginner in the world of trading, my suggestion is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) when you open your operation and wait for it to work.
For example, if you purchase a cryptocurrency when it is worth $ 15, it rises up to $ 25 and falls again to $17, the stop-loss will close your position at $ 21 or $ 22. Thus, you will obtain a fine profit.
It may sound more appealing to sell when the cost is at its highest, but unless you're psychic, that's impossible. The above method is much more realistic and it can give great results.
Sooner or later, you will be prepared for using advanced trading techniques, like short-selling or using leverage.
How to use eToro
As we have mentioned before, one of the best things about eToro is its simplicity: anyone can trade without having to read endless explanatory texts.
You won't have any problems with the interface if you are familiar with any of the most common social networks.
We will talk about how to register and the different sections of eToro that you should know.
You will have to fill in some requested data when registering.
Before you end up with the sign-up process, you will also have to answer some questions about your previous experience as an investor.
But you don't need to worry: it is not an exam. They only intend to know how much knowledge you have and what type of financial instruments they can suggest. For example, if it is your first experience in the investment world, 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 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. Just click the tab and you will be able to set it. This is perfect in case you want to purchase a security that is falling but you believe it will decrease more to a certain point.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already talked about the different financial instruments that are available on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- stocks
- Raw materials
- Forex
- Index funds
The term “social trading” makes sense in the section “People”: there, you can copy the trading strategies of the best investors.
In this section, you will be able to find those users 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 example, if you invest $ 1000 and the user puts 20% of their funds in an asset, eToro will put $ 200 of your funds in the same asset or company as well.
You will also see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
Remember that in some cases, you might prefer copying to CopyPortfolios than to particular users, because the former offer more diversity. The different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector is going to have success in the future? Then you will surely find a CopyPortfolio about it.
Virtual portfolio: How does it work?
Are you beginning as an investor? Using a demo account can be very helpful. Just assure yourself that the virtual mode is set and you can start practicing with an “imaginary” portfolio.
This can be a great way of gaining experience and confidence before trading with real funds. You will have an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you will be able to trade with a variety of financial instruments in your portfolio, not just with Coca-Cola.
The first attempt is not usually that good. But you can ask eToro to replenish the virtual funds to your account, and the second try you should do better.
Keep in mind that investing is mostly about being cold-minded, nevertheless, using a virtual account might have the opposite effect. It will never be the same as risking your own money.
Finally, if you are going to invest in the medium or long-term, with profits almost guaranteed only by duplicating a strategy, it is absurd that you waste years investing with a demo account. On the other hand, short and medium-term investments are perfect to try out with the demo mode.
Common 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.