|Recommended Broker 🇹🇭||
|🌐 Official website:||www.etoro.com *|
How to buy
If you live in Thailand, the best way to invest in Xiaomi 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 our language, accepts users from Thailand, 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 should 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.
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 Xiaomi rising while you wait for your transfer to be done.
How to make your first trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Xiaomi” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
Xiaomi business explained
Xiaomi Corporation is a company of Chinese origin in the technology sector that manufactures and markets electronic equipment, the best known being its smartphones. But what really makes Xiaomi famous is the “value for money”, being Xiaomi itself that defines itself as “a global company that manufactures quality products at honest prices”.
It was founded in 2010 by Lei Jun and Lin Bin, with 2011 being the year when they launched their first smartphone in the Chinese market. This was the first big step of the company that from that moment on would have a history full of successes. And perhaps the first milestone was in 2013 when it surpassed Samsung and Apple in sales for the first time in China.
And since then, the company's commercial success internationally has been an outright affront to other smartphone manufacturing companies. Especially as Xiaomi's market share grows year after year, snatching space from Samsung and Apple.
The Xiaomi model
On several occasions, one of Xiaomi's founders (Lei Jun) has stated that the company prices smartphones only slightly above the manufacturing cost price. And it does this without sacrificing the quality of the components, offering a high quality product at low prices compared to other brands.
And this translates into a volumetric sales strategy, i.e., offering quality at a low price to sell more and thus make a good profit. This model, although it may seem simple and trite, has worked so well that its market share is growing by 16% annually. In the European market, this growth has reached more than 50%.
Despite this, and the fact that more than 90% of its revenue comes from the sale of mobile devices, the company continues to categorize itself as a software and internet company. This has generated criticism of Xiaomi from Samsung and Apple for “not generating innovation” in any area.
Depending on who looks at it, the latter may or may not be true. But what is absolutely clear is that Xiaomi offers equipment with the same features of high-end equipment from other brands at a price up to more than 3 times lower, which has guaranteed its commercial success.
Finally, Xiaomi does not use traditional advertising media and focuses on social networks. In addition to building customer loyalty so that they are the spokespersons of the brand. Very similar to what other brands do, isn't it?
The fact is that, regardless of the criticism, Xiaomi is an established company with a business model that has given it such strength that it is practically impossible for Xiaomi to disappear in the future.
Some of its advantages are:
- It uses other traders successful investment strategies so you can replicate them
- You can go short
- It is uncomplicated and user-friendly
- eToro allows leverage
- There are uncountable possibilities for investments
Official main site: www.etoro.com *
You should absolutely consider eToro if you are thinking about investing in Xiaomi from Thailand.
eToro is famous for making “social trading” fashionable. Social trading is an ingenious form of investing in which traders can repeat the moves of other investors who have been making earnings over time.
If you are a beginner or do not have much investment experience, eToro is very helpful, since it automatizes your investment by repeating strategies from those who have been doing it for years and making profits. Also, in case you are an investor, the platform pays for your knowledge.
Another advantage is how easy the interface is, which turns out perfect for new users that are just learning all about the trading world.
What are the assets you can trade in eToro?
You already know about stocks, there are more financial instruments you can trade .
About Index Funds
Are suitable for those planning to invest for the long term, especially for beginners. If you don't need to use the amount of money you'll invest in less than five or ten years, index funds are the safest.
You may think differently, but benchmark returns are very difficult to beat and very few fund managers have done it, apart from some specific cases, like Warren Buffett's.
If someone brags about having beaten the index, they probably did it for a short time or on a specific occasion, or perhaps the commissions are so high that indexing would be a better decision.
Index funds offer these two great benefits: most of the time, they beat active managers in the long term, and the rates are so much lower.
The main benefit of investing in raw materials is that prices are more stable than those of other assets. Actually, their intrinsic stability is what makes most people choose commodities when facing market volatility or inflation. Even so, the prices of commodities are defined by their demand. Therefore, if a generalized fear of inflation provokes higher demand, the prices will also be higher.
Note that raw materials don't pay dividends. So, the only prospective income would come from a future sale of the asset.
Raw materials are usually classified into hard raw materials, which include precious metals as gold, silver, or copper, as well as industrial metals, and oil; and soft raw materials, which are agricultural products, like soy, cocoa, corn, or rice, for instance.
What is social trading?
The first platform that thought of trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also taken this concept, but we have tried them all and eToro is still the leader.
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 replicate the strategies of advanced investors, and to reward the latter for their ideas and knowledge.
When you enter eToro you will find in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are types of exchange-traded funds or thematic index funds, a portfolio that bundles a number of financial assets in a certain sector. For example, if you anticipate that a particular sector will have significant profits but you don't know which stocks to invest in, you just have to select a portfolio that includes a variety of related companies in that industry.
At the date of writing this text, this CopyPortfolio has generated a 100% profit in the last year, and you just need to click on “Invest”, enter the amount, place the stop-loss and wait.
But it is also possible to 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 strategies.
In each user profile, you will see their risk profile (the higher the risk, the more chances of winning more and losing more money), their performance history, and what kind of instruments they operate: stocks, forex, cryptocurrencies, raw materials….
Besides copying other user's strategies, which is great and very helpful, we also suggest that you make the most out of the community by reading other users. You can learn a lot from their experiences and knowledge, particularly if you aim to make a living from trading.
You can trade cryptocurrencies using several different methods: from purchasing and waiting to day trading using volatility of the market to your advantage.
In case you don't have much experience trading, I suggest a middle point: when you open your position, place a stop-loss 15-20% under the highest price, and let the magic happen.
Therefore, if for example you buy a cryptocurrency at $ 10, it reaches $ 20 and then decreases to $ 12, your stop loss will take you out of the trade at $ 16-17 and you will have made a considerable profit.
Perhaps you are wondering: why not selling back when the cost is at its highest? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and give good results.
At some point, you will be ready for more advanced investment strategies, like going short to profit from bear markets or using leverage.
How does a virtual account work?
If you are beginning as an investor, you can start by practicing with a “demo” option. You just have to set the “virtual” option” in the upper left corner and your operations will be carried out with “imaginary” funds.
A virtual account can help you to practice and gain experience before starting to trade with real funds. When you create your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on the platform (not only with Xiaomi).
Don't worry, since if you lose all your virtual balance, you can contact support so they can add them back to your demo account and you can make a second attempt.
Keep in mind that you should always be cautious when trading, and perhaps a virtual account can make you a bit impulsive. It will never be the same as risking your own money.
And of course, the demo mode is kind of pointless if you intend to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years. Demo accounts may be useful for trying out before investing 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.