Do you like the idea of buying shares in Disney? The multinational entertainment giant certainly merits further investigation. Nonetheless, however good you feel about an investment, it’s wise to familiarise yourself with the fundamentals of stock investing before you buy Disney shares. Which is why we’ve created a variety of easy to digest learning resources. Read on and we’ll help you get the skills and knowledge you need to make a smart investment.
Compare the best platforms to invest in Disney shares
Ready to invest in Disney shares? Review the links below to find an online broker that works for you. Our helpful guides take you through the best investment choices, breaking down the best online brokerages and introducing different methods of investing.
Trade Disney shares, right now
If long-term investing isn’t for you, consider trading shares instead. When you trade Disney stock, you’re buying and selling your shares in a short amount of time. As we go along, you will learn about different online brokers that offer the best platforms and the most affordable fees for higher-volume trading.
How to buy Disney shares in 7 simple steps
If you want to make money buying Disney shares, read up on how the company operates and how the stock usually acts. A mix of fundamental analysis (understanding earnings growth, revenue growth, etc.) and technical analysis (learning how to read charts and properly time your buys and sells) will serve you well as you strive for healthy profits.
If you’re just starting to invest, you can buy a smaller number of Disney shares, using a smaller amount of money. Gain more experience, then you can ramp up the size of your investments. Here’s a checklist to guide your decisions:
- Know the company. Everyone’s familiar with Disney but, as a prospective investor, you need to go deeper. What is Disney? How did the company get started? What’s fueled its recent growth? Will Disney’s business model and market position help the company grow in the future? The more you know about Disney’s business, the better prepared you’ll be to invest with confidence.
- Learn the basics. There are lots of terms associated with stock investing. Get to know this terminology. When analysing fundamentals, you want to learn what revenue growth, earnings growth, return on equity, and other terms mean. When trading, it helps to understand terminology like bid price, ask price, and stop-loss order. Also get to know the methods used to invest in and trade shares. Some of the most common methods include share-dealing, trading, and contracts for difference (CFDs).
- Share-dealing vs Trading. Share-dealing simply means buying Disney shares. There are two ways to make money when share-dealing. Firstly, you can sell Disney shares at a higher price than your buy price. Secondly, you can sometimes collect dividends, if it’s a company that earmarks part of its profits to issue dividends. Trading is a shorter-term approach to investing, which can include buying and selling shares of a company on the same day (called day trading). When you day-trade shares in Disney, you’re look for patterns within the stock chart and the box office haul of the latest Star Wars movie becomes far less important.
- Set your budget. When you first start investing, consider going with a smaller budget, say £1000 or less. Disney’s stock currently trades around $150 a share, meaning you could buy a handful of shares with an investment of less than $1000. As you gain experience, you can always choose to invest more.
- Choose a broker that’s right for you. Many online brokers offer reliable trading platforms but that doesn’t necessarily mean they’re all a perfect fit for your investing needs. Before you go and buy Disney shares, look for an online broker with low fees, a strong reputation and a reliable, easy-to-use trading platform.
- Evaluate market conditions. When the market goes up for an extended period of time (a ‘bull market’), most stocks will rise. When the market goes down for an extended period of time (a ‘bear market’), most stocks will fall. Try to stay away from buying stocks when a bear market is raging.
- Make your first investment. You now understand Disney’s business. You’ve grasped the basics of how to invest. You know your budget. You’ve found a reputable online broker. You can see that the market is performing well. Log into your online brokerage account, type in Disney’s ticker symbol (DIS), make sure the stock price isn’t too high for your comfort, then hit Buy. Just like that, you own shares of Disney.
Ways to invest in Disney; share-dealing vs trading
There are multiple ways to buy Disney shares, as well as sell and trade. Here are a few methods you can use:
Share-dealing involves buying Disney shares. Share-dealing is a longer-term strategy than trading shares.
- Pros: When you buy Disney stock and hold, technical analysis isn’t as important, meaning you can focus more on the company’s fundamental strengths. If Disney’s stock starts rising, holding onto the stock could lead to big long-term gains.
- Cons: Share-dealing can result in your capital getting locked up for a long time, limiting your ability to make other transactions. If Disney’s stock starts to fall after you buy, it might be tough to sweat through through a big correction.
A contract for difference (CFD) is an investment derivative that lets you speculate on the price movement of an asset, such as foreign currency, commodities, or a stock like Disney. When CFD trading, you don’t actually own currency, oil or Disney shares. You’re temporarily holding a contract pegged to the short-term price movement of an asset.
- Pros: CFD trading only requires you to put up a percentage of the total trade value, as the broker provides the rest (leveraged trading). With leveraged trading, you can make a lot more on a successful trade than you would if you only ventured your own money.
- Cons: Leveraged trading can also hurt you, since you’ll lose more than you would on a regular trade if Disney’s stock price goes down. CFD trading incurs overnight fees for trades that stay open for more than a day. CFD trading can be less beneficial for trading stocks than it is for trading commodities because you lose the voting rights and potential dividends that can come with owning shares.
Read our guides and courses to learn more about CFD trading. Ready to give CFD trading a try? Click on the links above.
How to buy, sell and trade Disney shares for beginners
Thinking about buying Disney shares? Here’s what you need to know:
Buying Disney shares
When buying Disney shares, go through an online broker. Buying shares makes sense if you want to buy and then hold onto a stock. Log into your online brokerage account, type the ticker symbol of the stock you want to buy (Disney’s ticker symbol is DIS), then click Buy. You now own shares in Disney.
The goal is to sell your Disney shares at a higher price than the price at which you bought. One option when selling shares is to hold for as long as possible, hoping for the biggest possible gain. You could also choose to sell your shares earlier, a smart strategy if a bear market starts to derail your plan.
When trading Disney shares, you can go through a typical online broker or a CFD broker. If you choose a CFD broker, know the risks that come with leveraged trading, and account for the fees that CFD brokers charge.
Our top tips for investing in shares of Disney
Now that you have an overview of how to invest in Disney shares, let’s review a few key points:
- Know your budget. Don’t invest more than you can afford to lose.
- Choose the right strategy for you. Your investment strategy should make sense for your specific investment goals and the amount of risk you’re willing to tolerate. Don’t try more complicated methods of trading until you’ve gained more experience.
- Stick to a plan. Use a thoughtful investing plan to increase your likelihood of success. Fear and greed can cause you to make bad decisions. A smart investment plan can help prevent distracting emotions from taking over.
- If market conditions change, don’t be afraid to change course. In a bear market, few stocks will hold their ground. Follow the broad market, and be prepared to adjust as necessary.
- Learn from your mistakes. It’s OK to make mistakes. The important thing is that you learn from those investing mistakes, which should increase your chances of success in the future.
Unsure which platforms to use?
Still not sure how to proceed? Here are some more investing factors to consider:
- Budget size. If you have a budget of £1000 or less, you can buy a few Disney shares. If you have a larger budget (say, £10,000+), other investment options could be more logical, including CFD trading and day-trading. Making frequent transactions can drain your budget in a hurry if you only have a few hundred dollars to work with.
- Risk assessment. As you gain experience and knowledge, you’ll do better with managing risk. For a more complex strategy, you could sell shares of Disney short, meaning betting on the stock’s price to fall. If you prefer a more conservative approach, try using stop-loss orders. Say you buy shares of Disney at $150. You can put in a stop-loss order at $135. That way, if Disney’s stock falls to $135, an automatic sell will protect your investment, and you won’t lose more than 10%.
- Market conditions. In a big downtrend (a bear market), buying defensive assets like bonds and commodities can be safer than growth stocks like Disney. If the market’s doing well, buying Disney shares could be more lucrative. Follow the latest market news on our site to make sound investment decisions.
- Set your investing goals. Want to make a quick buck? Day-trading shares (buying and selling on the same day) could be for you. If you want to buy Disney shares, then hold for a decade or more? You can try to buy and hold a stock like Disney, betting that the company will succeed for years to come.
- Follow emerging trends. New technology brings new investment opportunities. Disney recently unveiled a new digital platform that it hopes will bring in more viewers for its content. To remain a global entertainment power, the company will need to find other ways to leverage newer forms of technology.
What is Disney?
Disney is a multinational mass media company, with distribution channels all over the world. Disney has ramped up its growth again in recent years, making aggressive acquisitions of attractive entertainment properties. To find out more about the company, including charts, live prices, analysis, and more, see our Disney stock price page.
Try some of our stock market courses for beginners
Still not feeling ready to invest? Check out our website to learn best investing practices from our educational courses. Mastering the best investing and trading techniques will help prepare you to buy winning stocks like Disney.