How To Buy Sony Stock
Welcome to Trading Brokers step by step guide to buying Sony stock. Here you will find an easy to understand explanation of trading Sony stock. This includes how to buy Sony shares online, what you need to trade Sony stock and how to open a trading account with a stock broker so that you can buy Sony stock online today.
Maybe you have heard of buying Sony 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 Sony stock can help you along your journey.
Overview of Sony
Sony Corporation is a Japanese multinational holding company that, through its long list of subsidiaries, is involved in the manufacturing of consumer electronics, computer hardware, semiconductors, robots, and telecommunication equipment. Moreover, the company also produces video games, films, TV shows, and music. The company also provides financial services, credit finance, insurance, advertising services, banking, etc.
In 1946, a person named Masaru Ibuka started an electronics shop in Tokyo. The owner Masaru Ibuka was joined by another partner who together transformed the shop into Sony in 1958.
Headquarters of the company are located in Sony City, Minato, Tokyo, Japan.
Sony Corporation Stock
Sony Corporation is listed on the Tokyo Stock Exchange (Symbol: 6758) and New York Stock Exchange (Symbol: SNE). The company’s stock is part of the Nikkei 225 index and TOPIX Core 30.
What moves the price of Sony Corporation’s Stock?
Sony Corporation is a big conglomerate and to effectively predict its stock price movement, investors have to analyze each segment of its business separately. During your analysis of each segment, investors might see some segments performing better, while some performing below expectations. In such cases, investors will have to determine the cumulative impact on the group’s revenues and profitability to gauge the net impact of each segment on the group.
Game & Network Services Revenue
The game & Network services division of the company contributes a major portion to the company’s revenue and profit. The company’s PlayStation consoles have been very popular and have been consistently achieving great success against its rival, Nintendo. To project the future trajectory of the company’s revenue and stock, investors should continuously track the sales and company’s performance in the game & network service category. Any negative change in the market share in this category will likely dent the company’s revenues and profits, resulting in the price of its shares going down.
Financial Services Revenue
The company’s revenue from financial services is also rising consistently, with the financial services contributing the most share to the revenue and profit, after game & network services. As an investor, you must closely follow the numbers of financial services of the company to determine its impact on the overall revenue of the Sony group. Positive news regarding Sony’s financial services business segment can lift the share price upwards. On the contrary, disappointing numbers can drag the share price downwards.
The company’s semiconductors business generates the highest profit margin for the company. Therefore, if the company is able to generate higher revenues from the semiconductors business, the profitability will increase drastically because of the higher operating margin in this business segment of the company.
Therefore, as an investor, you must focus on any news releases and statistics about the semiconductor market to predict the possible move of the Sony Group’s stock price. If other segments remain the same, growth in the semiconductors business should move the stock price higher. On the other hand, contraction in the semiconductors business will keep the price of the shares downward.
Sony’s mobile business has been witnessing a declining trend, with sales diminishing quickly. Sony is looking for ways to cut costs in its mobile business to save the company from losing money.
Any improvement in the mobile business can be positive news for Sony’s stock and will push the price upwards. On the contrary, further deterioration in the mobile business segment of Sony will likely push the stock downward.
New business and Acquisitions
Any new business ventures or acquisitions by Sony is likely to have a positive impact on the stock price, owing to the perceived rise in revenues. Therefore, investors must keep themselves updated about new press releases, news, or SEC filings about significant events so that the movements in the stock price can be predicted accurately and timely.
Earnings Reports and Analysts’ forecasts
Sony is an important company and, therefore, many analysts continuously follow the company and keep on revising their earnings estimates based on different economic and statistical reports. When the earnings reports are published, the stock prices move upwards if the earnings are above the analysts’ forecasts. Conversely, the stock prices inch downwards when the earnings report miss the analysts’ estimates.
Therefore, investors should focus on analysts’ reports as well as earnings reports to get clues about the possible future direction of the stock.
Following each update about a conglomerate like Sony Group can be a daunting task because of the different and diversified business segments it has. However, if you are able to track only the major contributors mentioned above, you will be able to understand most of the possible price movements in its stock.
Investing in Sony
Investing in Sony stock is when you buy Sony shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Sony stock in order to try and make a profit when the Sony stock price increases in value.
Trading Sony stock
Trading Sony stock is when a trader speculates on the movement in the Sony stock price without actually owning the shares in Sony. Traders tend to buy and sell Sony stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Sony stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).
One of the most popular ways to trade Sony stock is via CFDs (contracts for differences). When trading Sony CFDs, you do not actually invest in Sony shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Sony 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 Sony will rise or short (sell) positions if they thought that the Sony 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 Sony 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 Sony 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.
Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Sony investors can use futures trading to speculate on the price movement of Sony 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.
Sony spread betting
Spread betting is a financial derivative that enables traders to speculate on Sony 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 Sony stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Sony options are financial instruments that are derivatives based on the value of Sony’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 Sony market price.
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.
Sony is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Sony, may consider ETFs.
Where to buy Sony 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.
ASIC, BVI, CBI, FFAJ, JFSA, FSCA, IIROC, ADGM FRSA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
ASIC, CySEC, FSA, SCB
Min $200 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
Why trade Sony 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 Sony stock with relative ease. The cost involved to get started makes trading Sony 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 Sony stock to try and earn profit from the variation in Sony’s stock price. When trading Sony CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Sony 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 Sony’s stock for a more long-term hold.
Buying Sony 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 Sony, it is important you understand the dynamics that affect the Sony stock price.
How to trade Sony stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Sony stock online. Here is a summary of the key steps:
1. Decide if trading Sony stock is for you
Trading Sony 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 Sony stock online.
2. Educate yourself
Before trading Sony 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 Sony 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 Sony stock broker
In order to trade Sony 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 Sony
If you have made it this far then you may be ready to start trading Sony stock online! The next step is to research Sony 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 Sony 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 Sony stock
Once you feel ready to trade Sony stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Sony, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Sony trades for the long-term, whereas traders may buy and sell Sony stock on a daily basis.
Is trading Sony stock right for me?
Trading Sony 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 Sony 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 Sony 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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