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How to buy
For those who live in Philippines, a great way to invest in Johnson & Johnson 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 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 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 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 Johnson & Johnson rising while you wait for your transfer to be done.
How to make your first purchase
When eToro has confirmed the receipt of your credit, you just have to search for “Johnson & Johnson” 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.
Johnson & Johnson business model
Johnson & Johnson is one of the largest and oldest American companies. It was founded in 1885 by Edward Johnson along with brothers James and Robert Johnson, taking their surnames as the company name. Since then, the company has grown to the point that Fortune magazine ranks it among the 100 largest companies in the United States.
Initially, the creators' idea was to manufacture and market a line of ready-to-use surgical-grade bandages. But as time went by, Johnson & Johnson added more products to its catalog, although always related to the health area.
This is how it went from bandages to produce a wide variety of items that can be framed in pharmaceuticals, medical devices and consumer goods. All this is marketed around the world with its more than 250 subsidiaries that are located in 60 countries and distribute to the rest.
Of the product categories mentioned above, pharmaceuticals are the ones that generate the most revenue for Johnson & Johnson, representing 50% of the total. This is followed by medical equipment with 33% and consumer products with the remaining 17%, which are marketed under the Johnson's brand.
In addition to the above, another important aspect of this company is that more than 50% of its revenues come only from the United States. Some 23% comes from Europe, 18% from Asia and Africa and 7% from the Americas, excluding the United States. This gives us an idea of how important the American market is for the company.
Johnson & Johnson for investors
If there is a perfect stock it would be Johnson & Johnson for several reasons. The first is that it is one of the most solid and consistent companies out there today. Also, as we mentioned, it is among the largest in the United States.
Another important point is that its share price, although historically not very volatile (which is appreciated), grows year by year. So much so that, if we compare the growth of Johnson & Johnson's share since its foundation with the growth of the SP500, which is taken as a gauge of the American economy, Johnson & Johnson is the winner with a great advantage.
Finally, this company has almost 50 years paying uninterrupted dividends to its investors and this is something that few companies have achieved. To this we must add that they are growing dividends that the last 20 years have increased on average 10% per year. This makes it a must-have stock for any investor.
Why do we recommend it?
- There are lots of goods you can invest in
- eToro allows leverage
- Very user-friendly and straightforward
- It uses techniques and moves from skilled traders so you can replicate them
- Allows you to short sell
Main site: www.etoro.com *
In case you are interested in acquiring Johnson & Johnson shares from Philippines, eToro is certainly the best way to do it.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become popular thanks to eToro.
If you are still a newbie or do not have much experience in investments, eToro is very helpful, because it automatizes your investment by emulating moves from other experienced people with a very long profit history. And for those skilled investors willing to share their techniques with others, eToro pays for it.
Another advantage is how intuitive the interface is, which turns out perfect for new users that are just learning all about the trading world.
What are Contracts for Difference?
It is possible that you have found the term CFD repeatedly if you already accessed eToro. Before we explain this further, you must know that cryptocurrency trading on the platform is only CFD if you are short-selling or select leverage above x2 (although the platform does not even allow this option).
For the record, and in case you want to know about day trading cryptocurrency and other more advanced operations, below we will also cover concepts like going short and leverage.
eToro allows you not only to bet “in the black”, but through CFDs you can also bet “in red”. Let's say that you believe that the Johnson & Johnson will fall, so probably you think that it is better to wait until it does and then go in. However, if you are convinced that it is going down, why not take advantage of that and earn money?
You can do by “going short”. Its operation, roughly, consists in the following:
- You obtain from a loan 100 units of Johnson & Johnson, which cost $ 5,000 (these numbers are fictional)
- You sell them at their current price, $ 5,000
- The Johnson & Johnson devaluates from $ 50 to $ 30
- You obtain the 100 units again, but at $ 3,000
- Then you return the 100 units to whom made the loan in the first place
- You keep the $ 2000 difference!
Take into account that it is much simpler than it sounds: we can just say that by trading in Johnson & Johnson you can also make money if you foretell it will go down.
How are CFDs and futures different?
What are the main differences between CFDs and Futures?
- Futures: operations are made with someone else, another investor.
- CFDs: the operations are not made with another individual, but the counterparty is the brokerage.
- Date of expiration:
- Futures: there is an expiry date. Once the contract expires, it is closed even if you are in red.
- CFDs: there is no expiration date. You can wait until you get in a good position before closing.
- Options for trading:
- Futures: very little variety
- CFDs: there is an enormous amount of possibilities
- Minimum deposit amount or “trade size”:
- Futures: you have to invest much more
- CFDs: you can get in with a lower trade size
- Costs and charges:
- Futures: being higher figures, rates are, commonly, proportionally lower
- CFDs: higher (although not excessively)
- Futures: you can't leverage
- CFDs: completely available
Payment methods on eToro
When it comes to payment on eToro, there is not 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 (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
Remember that for security reasons, you need to be the holder of the account or the credit card.
You can start from $ 200, and there is a limited maximum for unverified accounts. So, if your intention is to deposit higher amounts, you will need to verify your account previously.
eToro accepts deposits in any currency, but charges a commission for making the conversion to USD. So it is better to use USD directly.
How to use eToro
As we have referred among the positive aspects of eToro, the best thing about this platform is its extraordinary simplicity: anyone can trade without having to read endless guides.
You won't have any problems with the interface if you are familiar with any other social network.
Now we are going to detail the sign-up process and the sections of the page that you should know.
You will have to provide some personal data (like full name or address, for instance) when registering.
Also, you will have to answer some questions about your experience as an investor.
But don't feel intimidated, it is not a test that you have to pass. The objective is to know more about you and be clear about which financial instruments they should recommend according to your knowledge and experience.
When you finish with all the requested information, you will stop seeing the “incomplete profile” message.
Let's get to know the fundamental sections of the platform.
“Set Price Alerts” allows you to set alarms on the price of certain securities. You only need to click on the three points at the end of the line and you will be able to program a price alert. This is very helpful when you are after an asset that is falling, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned before, the six types of instruments on eToro are:
- Raw materials
- Index funds
In “People”, you will find the public profiles of eToro users and their performances. This is where “social trading” makes sense since you can replicate the strategies of your preferred traders.
You can search and find users according to your interests. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, proportionally. For instance, if you invest $ 1000 and the user puts 20% of their funds in an asset, the platform will invest $ 200 of your funds in the same asset or company as well.
Lastly, you will also see the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
The benefit of using CopyPortfolios instead of copying particular traders is that this way you will diversify the risk. There are all kinds of portfolios that you can identify easily and are divided by sectors. Thus, in case you think a specific industry, like fashion or oil, has a good chance of prospering, you can find that specific portfolio and invest.
“Social trading”, an innovative concept
eToro was the first platform that proposed social trading, and this new concept turned out to be brilliant. Many other brokers copied this idea, but eToro beats them all.
The merit of the platform is that they did not limit themselves to transferring the logic of the social network to the trading world. There are countless pages to talk about investing, but they wanted to go further: the major contribution of eToro was to allow users to replicate the strategies of experienced traders, and to reward them latter for their ideas.
It is not complicated at all. When you enter eToro you will find in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of financial assets of the same sector. Let's say that you consider that the gaming sector is going to succeed soon but you don't know which stocks to select, you just have to invest in the CopyPortfolio called “InTheGame”, which includes companies like Microsoft, Google, Tencent, NVIDIA, Logitech, Intel, AMD, Nintendo, Ubisoft, Unity…
You should know that in the last twelve months, CopyPortfolio has generated 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 “Invest”.
But you can also copy other users of the platform who are successful investors. It is really simple: you can find them with “Copy People” and just duplicate their moves.
In the profile of each user, you will be able to see their risk profile (the higher the risk, the more possibilities of winning more and losing more money), their performance history, and the type of assets they trade: equities, forex, cryptocurrencies, raw materials….
Replicating strategies from others can be very interesting and useful, but I also recommend taking advantage of the community to read other users and learn from them. If your goal is to end up living from investment, it is a great place to acquire valuable knowledge.
When trading cryptocurrencies, there are different possible methods or strategies, such as buying and holding or day trading, for naming just a few.
My recommendation for those who are starting to invest is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work on its own.
For example, if you buy a cryptocurrency when its price is $ 15, then it increases to $ 25 and falls again to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will obtain a good profit.
It may sound more appealing to sell when the price is at its highest, but that is simply not possible. The above strategy is much more realistic and it can give great results.
Later on, you will be able to apply more sophisticated techniques, like using leverage or going short.
In case you are beginning as an investor, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional funds is very simple.
A virtual portfolio can be a good way of practicing before starting to operate with real money. When you open your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of financial instruments available on eToro, besides Johnson & Johnson.
If your first attempts don't go as planned and you lose your funds, you can always ask eToro support to replenish $ 100k of virtual balance. Probably on the second try you will improve a lot.
Keep in mind that you should always be cold-minded when trading, and perhaps using a demo portfolio can prevent you from controlling your impulses. It is not the same to operate with your own money than with fake funds, which you can lose without any consequences.
Finally, the virtual mode is kind of pointless if you intend to invest in the medium or long-term (with almost guaranteed returns only by replicating an index), since you would be wasting years to see the outcome. Virtual accounts may be helpful for trying out before trading in the short or medium-term.
* 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.