How To Buy Walmart Stock
Welcome to Trading Brokers step by step guide to buying Walmart stock. Here you will find an easy to understand explanation of trading Walmart stock. This includes how to buy Walmart shares online, what you need to trade Walmart stock and how to open a trading account with a stock broker so that you can buy Walmart stock online today.
Maybe you have heard of buying Walmart 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 Walmart stock can help you along your journey.
Overview of Walmart
Walmart Inc. (WMT), founded in 1969, is a multinational retailer that runs a chain of discounted departmental stores, hypermarkets, and grocery stores in the United States and many countries around the world.
The Bentonville, Arkansas-based company retail giant has enjoyed exceptional growth in the recent years, mainly due to strong demand across all its segments, and particularly in e-commerce segment. Its investment in e-commerce and technology has also played a key role in driving its growth. Overall, Walmart operates more than 11,500 stores under 60 banners in 28 regions, besides operating e-commerce platforms in 11 countries.
The company primarily operates through three key segments including Walmart U.S., Walmart International and Sam’s Club.
Walmart U.S. is the biggest segment of the company that generates the highest amount of revenues and profits. The company’s stores are located across all the 50 states of the country, making it the biggest retail brand of the U.S. Its extensive operations are supported by its large distribution network spread throughout the country.
It is the second biggest segment, with operations in around 26 countries in the world. Walmart runs its overseas locations through its completely owned or majority-owned subsidiaries. Its international stores follow several formats such as wholesale, retail, supercenters, hypermarkets, cash and carry, e-commerce, and warehouse clubs.
It is a warehouse club that operates across 44 states of America. Sam’s Club plus members can enjoy cash rewards of up to $500 on annual basis. The company also offers free shipping to the club members, besides discounted prices on several products.
Factors controlling the Walmart stock price
Walmart has expanded over the years by strategically investing in human resources and technology to compete with its rivals. Here are some of the key factors that are expected to contribute to the growth of the company in the years to come.
Brand name and performance
Walmart is the biggest company in the world in terms of total sales. The company has consistently performed well over the years, continuously generating reasonable earnings and revenue. The company’s massive size and strong balance sheet makes it one of the safest investments.
Successful business model
The company’s overall strategy is to keep the expenses down and pass the saving on to the shoppers in the form of discounted prices on a wide range of products. If the company continued this trend of saving money, it will certainly help the retail giant to further boost its revenues and earnings, in addition to enticing more customers towards its stores that will eventually drive more growth.
Walmart has launched several new technologies in the recent years to compete head to head with its key competitors. For instance, it rolled out a “scan and go” app for both Android and iOS users, which saves customers from standing in long queues to check out. It has also made the operations more efficient and smoother at its stores.
Investing in Walmart
Investing in Walmart stock is when you buy Walmart shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Walmart stock in order to try and make a profit when the Walmart stock price increases in value.
Trading Walmart stock
Trading Walmart stock is when a trader speculates on the movement in the Walmart stock price without actually owning the shares in Walmart. Traders tend to buy and sell Walmart stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Walmart 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 Walmart stock is via CFDs (contracts for differences). When trading Walmart CFDs, you do not actually invest in Walmart shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Walmart 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 Walmart will rise or short (sell) positions if they thought that the Walmart 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 Walmart 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 Walmart 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. Walmart investors can use futures trading to speculate on the price movement of Walmart 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.
Walmart spread betting
Spread betting is a financial derivative that enables traders to speculate on Walmart 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 Walmart stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Walmart options are financial instruments that are derivatives based on the value of Walmart’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 Walmart 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.
Walmart is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Walmart, may consider ETFs.
Where to buy Walmart 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, FSA, FSCA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, CySEC, FSA
Min $200 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Why trade Walmart 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 Walmart stock with relative ease. The cost involved to get started makes trading Walmart 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 Walmart stock to try and earn profit from the variation in Walmart’s stock price. When trading Walmart CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Walmart 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 Walmart’s stock for a more long-term hold.
Buying Walmart 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 Walmart, it is important you understand the dynamics that affect the Walmart stock price.
How to trade Walmart stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Walmart stock online. Here is a summary of the key steps:
1. Decide if trading Walmart stock is for you
Trading Walmart 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 Walmart stock online.
2. Educate yourself
Before trading Walmart 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 Walmart 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 Walmart stock broker
In order to trade Walmart 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 Walmart
If you have made it this far then you may be ready to start trading Walmart stock online! The next step is to research Walmart 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 Walmart 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 Walmart stock
Once you feel ready to trade Walmart stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Walmart, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Walmart trades for the long-term, whereas traders may buy and sell Walmart stock on a daily basis.
Is trading Walmart stock right for me?
Trading Walmart 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 Walmart 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 Walmart 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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