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How to buy
If you live in Philippines, a great 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 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 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 inbox: 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 “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.
Walmart business explained
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.
About Contracts for Difference
It is possible that you have seen the term CFD more than once if you already registered on eToro. We will come back to it, but first, you should know that cryptocurrency trading on the platform is only CFD if you go short.
In case you are interested in day trading cryptocurrency or other advanced trading operations, you will also find out about terms like leverage and “going short”.
eToro allows you not only to bet “in the black”, but through CFDs you can also bet “in negative”. For instance, you have the conviction that the Walmart will fall, so you obviously think “if it is going to depreciate (go down in price), I'll just wait until it does and then I'll bet”. But if you really consider that it's going down, why not take advantage of that?
You can do this through a practice known as “going short”. Its operation, roughly, works like this:
- You obtain from a loan 100 units of Walmart, with a total value of $ 5,000 (these numbers are entirely made up)
- You make $ 5,000 by selling the 100 units
- The Walmart devaluates from $ 50 to $ 30
- You purchase all 100 units one more time, but now they are worth $ 3,000
- Then you return the 100 units
- The rest is yours, so, you will have earned $ 2000
It all sounds more complicated than it really is. Just bear in mind that by trading in Walmart on eToro, you can earn money when you anticipate the price will fall.
Differences between futures and CFDs
What are the differences between CFDs and Futures?
- Futures: operations are made with someone else, another trader.
- CFDs: you don't “play” with another individual, but the counterparty is the brokerage platform, in this case, eToro.
- Date of expiration:
- Futures: they expire. Once the contract expires, it is closed even if you are in red.
- CFDs: they do not have an expiry date. It is possible to get back to a good position before exiting.
- Trading markets:
- Futures: very little variety
- CFDs: you have plenty of options, there are CFDs of practically anything
- Minimum deposit amount or “trade size”:
- Futures: you have to invest much more
- CFDs: it is possible to start with a low amount
- Pricing and rates:
- Futures: as you need to invest more, rates are lower
- CFDs: higher (although not too much)
- Futures: you can't leverage
- CFDs: it is always possible to leverage
There are many methods to trade cryptocurrencies: for instance, you can buy and hold, or you can day trade using volatility of the market to your advantage.
My recommendation for those who are starting to invest is going for a middle point: when you open your Walmart position, set a stop-loss order 15-20% below the maximum price, and let the magic happen.
This means that if, for example, you acquire a cryptocurrency at $ 10, it reaches $ 20, and after that it decreases to $ 12, your stop loss will close your position at $ 16-17 and you will make a pretty good profit.
It may sound more appealing to sell when the cost is at its peak, right before corrections, but unless you're psychic, that will never be possible. The mentioned strategy is much more realistic and, well applied, it can work very well.
Eventually, you will be prepared for using advanced trading strategies, like using leverage or going short.
For those who still don't have much experience in investing, a demo account can be very helpful. Just make sure the virtual mode is set and you can start operating with fictional funds.
A virtual account can be a good way of gaining confidence before starting to operate with real money. When you create your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of financial instruments available on the platform (not only with Walmart).
The first attempt is not usually that good. But don't worry, since you can ask eToro to deposit back the virtual funds to your portfolio.
However, keep in mind that you need to be prudent for trading, and using a demo account can have an adverse effect. It is not the same to risk your own money than to do operations with a fake balance which loss does not suppose any drama.
And of course, if you are interested in trading in the long or medium-term, there is no point in using the virtual mode and having to wait for years. But it can be very useful if you want to practice short and medium-term investment.
“Social trading”, an innovative concept
eToro is a pioneer in social trading, it was the first broker to propose it. Since that moment, many other platforms have imitated this concept, but eToro is definitely the best.
But it wasn't just about creating yet another social network to talk about investment. The real achievement was in the possibility for users to replicate the strategies of advanced investors, who were in turn paid for their ideas.
When you enter eToro you will find in the menu on the left 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 example, if you consider that a particular sector will have significant profits but you don't know which stocks to invest in, you just have to choose 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 selected amount, place the stop-loss order and click on “Invest”.
But it is also possible to copy other users of the platform who are successful investors. It is really easy: you can find them with “Copy People” and just duplicate their moves.
In each user profile, you will be able to see their risk profile (the higher the risk, the more chances of winning more and losing more), their performance, and the kind of financial instruments they operate: currencies, cryptocurrencies, commodities, shares….
Besides copying other investor's moves, which is really interesting and helpful, we also recommend that you make the most out of the community by reading other users. You can learn a lot from their experiences, mainly if you aim to make a living from investments.
* 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.