How To Buy Dollar General Stock

How To Buy Dollar General Stock

Welcome to Trading Brokers step by step guide to buying Dollar General stock. Here you will find an easy to understand explanation of trading Dollar General stock. This includes how to buy Dollar General shares online, what you need to trade Dollar General stock and how to open a trading account with a stock broker so that you can buy Dollar General stock online today.

Maybe you have heard of buying Dollar General stock online or through a friend. Perhaps you are looking to trade and are curious about the different options available to you. Whether you are looking to speculate, invest or just learn more, this guide on how to buy Dollar General stock can help you along your journey.

Dollar General is a chain of thousands of variety stores spread across the country. What are those factors that move its stock?

Overview of Dollar General

Variety stores are retail outlets that sell general merchandise, usually at lower prices than you regularly will find elsewhere. Due to their usual dirt-cheap prices, many times as low as a dollar, they got the name “Dollar Stores.” Over time, some of those stores grow to have multiple outlets and eventually become huge retail chains. An example is Dollar General.

Founded in 1939 as a family business, Dollar General is one of America’s topmost variety chain stores. Headquartered in Tennessee, the Fortune 500 company has at least 143,000 employees, with over 16,000 outlets spread nationwide.

Its main business line is selling merchandise such as clothing, groceries, toys, home items and others at the steepest of prices. However, it has other subsidiaries, including Dolgencorp LLC, Dollar General Financial, Dollar General Global Sourcing and Dollar General Literacy Foundation for its CSR efforts.

What Moves the Dollar General Stock Price?

Dollar General trades on the NYSE under the ticker DG. Many factors affect Dollar General’s stock price, but those discussed below can be amongst the most crucial in the mid-to-long term.

Strong Platform

Currently, Dollar General has stores in almost all the states – and that number keeps growing. It sells top brands with the steepest discounts one can get elsewhere. Its product offerings consist mainly of consumables and essential and necessary items, meaning that it is not a cyclical business. That is, there will always be sales at whatever time.

Growth and Expansion

As mentioned earlier, Dollar General currently has stores in virtually every state. Nevertheless, it still has even more room for growth. The company already has plans to expand its services into states where it currently lacks presence and to consolidate further its presence in the states in which it is already located.

That is for the United States alone. Dollar General can also go international, looking to markets in Europe, Latin America and the Asia Pacific. To do this effectively, it can look into strategic acquisitions of strong brands in those countries.

Recession-Proof Business

Dollar General’s business can be regarded as recession-proof. In short, no matter the state of the economy at any time, Dollar General is assured of sales, even during recessions. Hence, ironically, its sales may receive some boost due to economic downturns.

In fact, during gloomy economic atmosphere such as the 2007/2008 Great Recession, families tend to spend less and instead look for the cheapest deals on whatever they may be buying, creating an increased demand for businesses like Dollar General.

Geopolitical Uncertainties

Dollar General and its competitors mainly tout pricing as their strategy. However, to be able to do so profitably, they have to source the inventory cheaply. They do from overseas, mainly from China. Consequently, any unfolding geopolitical tension, such as a trade war between the US and China, will significantly affect Dollar General and competitors.

If the US government places tariffs on certain items, they become more expensive for Dollar General, who will have to pass it to the customers. This defeats the “lowest price” strategy employed by most dollar stores as customers may instead try other well-established brands.

Competition

The dollar store industry is very competitive, its competitive value proposition being pricing. As experts have pointed out, pricing as a competitive strategy is not always an effective one, however.

Investing in Dollar General

Investing in Dollar General stock is when you buy Dollar General shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Dollar General stock in order to try and make a profit when the Dollar General stock price increases in value.

Trading Dollar General stock

Trading Dollar General stock is when a trader speculates on the movement in the Dollar General stock price without actually owning the shares in Dollar General. Traders tend to buy and sell Dollar General stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.

You can buy and sell Dollar General stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).

Dollar General CFDs

One of the most popular ways to trade Dollar General stock is via CFDs (contracts for differences). When trading Dollar General CFDs, you do not actually invest in Dollar General shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Dollar General stock price. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.

A CFD trader can go short or long, set stop and limit losses and apply trading scenarios that align with their own personal objectives. Traders would open long (buy) positions, if they think the stock price of Dollar General will rise or short (sell) positions if they thought that the Dollar General stock price will fall. The difference in price between the entry and exit price is the traders realised profit or loss, excluding any broker commission and fees.

For example, if you think Dollar General shares are going to increase in price, you could buy a share CFD on the company. You will exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares increase in price and making a loss if they decrease in price.

On the contrary, if you think Dollar General shares are going to decrease in price, you could sell a share CFD on the company. You will still exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares decrease in price and making a loss if they increase in price.

Dollar General futures

Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Dollar General investors can use futures trading to speculate on the price movement of Dollar General stock in order to try and make a profit. Traders would look to go long (buy) a futures contract if they believe the price will rise or short (sell) a futures contract if they believe the price will fall. The difference in price between the price at the start and expiry date of the futures contract is the profit or loss from the contract.

Dollar General spread betting

Spread betting is a financial derivative that enables traders to speculate on Dollar General stock falling or rising without taking ownership of the underlying asset. If the trader makes a correct prediction and the asset does move in that direction, they could make a profit, minus any broker fees. On the other hand, if the price moves against their prediction, they would incur a loss.

Financial spread betting is similar in ways to CFD trading except that you are betting a fixed amount per point on the Dollar General stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.

Dollar General options

Dollar General options are financial instruments that are derivatives based on the value of Dollar General’s stock. Traders usually enter into calls when they expect the price of the underlying asset to increase, and puts when they expect the price to decrease. Option contracts come with an expiration date before which the holder needs to exercise their option to buy or sell an underlying asset at an agreed-upon price. The stated price on an option is known as the strike price.

Buyers can choose to exercise their calls and puts or not whereas sellers are obligated according to the buyer decision. Therefore, the sellers (writers) can be exposed to more risk than buyers whose losses can be limited to the premium paid for the contract in the instance they do not exercise the contract. On the other hand, sellers could lose more depending on the Dollar General market price.

Dollar General ETFs

Exchange Traded Funds (ETFs) enable traders to invest in a basket of securities that trade intraday like individual stocks on an exchange, and are typically designed to track the performance of an existing market or group of markets.

Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be commonly used to help diversify an investment portfolio and create a mini-portfolio, or, for the active trader, they can be used to try and take advantage of price movements.

Dollar General is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Dollar General, may consider ETFs.

Where to buy Dollar General stock?

Stock trades are processed via a stock exchange, where a stock broker represents each investor. The majority of investors will nowadays use an online stock broker to buy and sell stocks through a stock trading platform which will enable them to connect to the stock exchange. You can see a selection of our best stock brokers below with whom you can open an account to trade stocks online.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.

ASIC, BVI, CBI, FFAJ, JFSA, FSCA, IIROC, ADGM FRSA

Min $100 Deposit

2006

1:400

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.
2.

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF

Min $250 Deposit

1974

1:200

Review Trade! Trade!
Terms & conditions apply
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3.

ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA

Min $200 Deposit

2010

1:30

Review Trade! Trade!
Terms & conditions apply
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.

ASIC, CySEC, IFSC, DFSA

Min $5 Deposit

2009

1:888

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% 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.
5.

ASIC, CySEC, FSA, SCB

Min $200 Deposit

2007

1:500

Review Trade! Trade!
Terms & conditions apply
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why trade Dollar General stock?

Trading the stock market has become a popular investment activity for many people, especially with the technology that we have these days making it more accessible than ever. There are a vast number of trading brokers, trading platforms and trading apps available for buying and selling Dollar General stock with relative ease. The cost involved to get started makes trading Dollar General stock accessible to traders of all experience levels from across the globe.

The availability of leverage has also contributed towards the increase in aspiring traders. Leverage allows traders to hold a position size greater than they would have been able to without it. E.g. An account balance of $1,000, could take a position size of $5,000 with 1:5 leverage. Whilst this can increase potential profits, it also greatly increases risk. It is therefore of the upmost importance that you have a clear understanding of the significant risks involved with online trading, especially when using leveraged positions.

The majority of traders would look to buy and sell Dollar General stock to try and earn profit from the variation in Dollar General’s stock price. When trading Dollar General CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Dollar General shares. This can make it a more convenient trading method for anyone who has a trading account with an online broker. Alternatively, long term investors may purchase traditional shares in Dollar General’s stock for a more long-term hold.

Buying Dollar General stock can also be a way to diversify a trading portfolio and to hedge against shares in other stocks or investments in other asset classes such as forex, commodities, precious metals and cryptocurrencies.

However, before investing in Dollar General, it is important you understand the dynamics that affect the Dollar General stock price.

How to trade Dollar General stock online?

If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Dollar General stock online. Here is a summary of the key steps:

1.     Decide if trading Dollar General stock is for you

Trading Dollar General stock online carries an element of risk and can take more time than other forms of investing. You will need to research the company, manage your positions, follow market news and decide how to react to it. It is important to understand the risks and dedication that comes with trading Dollar General stock online.

2.     Educate yourself

Before trading Dollar General stock, it is imperative to learn as much as possible about investing and trading online. Any mistake could prove to be costly. There is an abundance of free educational materials provided by many online brokers that can help you to improve your trading skills and knowledge.

Most brokerages will also provide a free demo trading account so that you can practice trading Dollar General stock online with virtual funds in order to familiarise yourself with the trading platforms and practice your trading strategies until you feel confident enough to open a real trading account.

3.     Choose a Dollar General stock broker

In order to trade Dollar General stock online, you will need a broker account and trading platform to execute your trade positions through to the market. When choosing a broker, there are a few important things to consider such as regulation, commission fees, platforms, tools, education, funding options and customer support.

If you do not have the time to research brokers, you can see a list of our best brokers that we have already prepared to help traders. If you would like to know more, you can also view our detailed guide on how to choose a trading broker.

4.     Research Dollar General

If you have made it this far then you may be ready to start trading Dollar General stock online! The next step is to research Dollar General to help increase your knowledge in the company. The best brokers should have this information conveniently displayed for you within their trading platform.

5.     Have a trading plan

Some of the most important factors that can help determine Dollar General stock trading performance can be the trading plan and discipline. It is important to have a solid trading plan personalised to your own needs that includes the money management and trading strategy that you will use. Most experts and professional traders would try to not let negative emotions such as fear, anger and greed affect their trading strategy.

6.     Buy and sell Dollar General stock

Once you feel ready to trade Dollar General stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Dollar General, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Dollar General trades for the long-term, whereas traders may buy and sell Dollar General stock on a daily basis.

Is trading Dollar General stock right for me?

Trading Dollar General stock is a popular choice for long-term investors and active traders. It can be suitable for scalping, day trading and swing trading. Traders who would usually trade forex, trade indices, trade commodities, trade cryptocurrency, may look to diversify their portfolio.

However, it is important to understand the significant risks involved with trading Dollar General stock online, especially when using leveraged positions. Most experts would suggest trading on a demo account with virtual funds to begin with.

This can be a useful way to familiarise yourself with how to trade Dollar General stock and using trading platforms whilst allowing you to practice your trading strategies until you feel confident and produce consistent results. Most stock brokers provide unlimited demo accounts free of charge.

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