If you’re thinking about getting started as a stock market investor, buying, selling, and trading shares of General Electric could be a good option. You’ll want to do your research and learn key investing principles so you’ll be ready to invest in General Electric stock. We’ve produced this page, as well as numerous other educational articles in order to help you make smart investment decisions for buying General Electric and other stocks.
If you’re ready to invest, click the links below. Alternatively, you can keep reading in order to find out more information to get you ready to invest your money.
Buy General Electric stocks, right now
If you’re done reading, you can buy General Electric stock with confidence by selecting a stockbroker below:
Trade General Electric stocks, right now
Trading shares is a shorter-term investment approach than buying (and holding) shares. When trading shares of General Electric, the aim is to make money faster by trading more frequently as the market fluctuates. We’ve reviewed the best low-fee online brokers that can help you make money from higher-frequency trading.
How to buy General Electric stocks in 7 simple steps
Before investing, you’ll be well served getting to know how General Electric operates as a company, as well as the track record of General Electric’s stock. You’ll also want to pay close attention to the broader stock market to see how it’s performing prior to putting your money into General Electric.
Here’s Invezz’s checklist to go over before you buy General Electric stock.
- Get to know the company. How did General Electric grow to become one of the world’s largest companies, only to then lose market share, revenue and earnings momentum, and stock price power? Will the company bounce back? The better you understand how General Electric does business (and what it’s doing to try to rebound), the better your chances of success when you buy General Electric stock.
- Learn the basics. For your best chance at investing success, get to know the key tenets of both fundamental and technical analysis. Er have a wide variety of educational articles and guides to help you get to grips with everything you need to know.
- Decide if you want to be share-dealing or trading. Share-dealing occurs when you buy shares of a company such as General Electric, with a plan to hold on to the stock for a while. To make money through share-dealing, you sell your shares at a higher price than your purchase price. Additionally, if the company in which you have bought stocks pays dividends to investors, you will also benefit from these. Trading shares is a shorter-term approach, one that can include day trading and swing trading. By reading stock charts (technical analysis) and opening and closing positions based on if you think the stock price will rise or fall in short timeframes, you can make money more quickly than when share-dealing. The shorter time frame makes fundamental analysis of the stock you’re trading, with technical analysis being the key skill required for trading.
- Set a budget. When you start investing, it’s best to begin with a smaller budget, something like $1,000. This way you can learn the ropes without being at risk of losing a lot of money. After years of tough times, General Electric now trades all the way down near $7 per share, so you can buy around 140 shares with that starting amount. As you gain experience and grow your bankroll, a bigger budget (say, $10,000) will allow you to comfortably make higher-frequency trades via day trading or swing trading.
- Choose a broker. There are plenty of online brokers that can handle all your trading needs. Still, not all of them are the same. Look for a broker that offers an easy-to-use platform, a strong reputation, and low transaction costs. Also be on the lookout for specific things that can make a broker more suited to your strategy, such as if they offer leveraged trading.
- Evaluate the condition of the stock market. When the stock market rises 20% or more during a stretch of time, that’s a bull market; most stocks will go up during that time. When the market falls 20% or more, that’s a bear market; most stocks head lower during that time. Follow the broad market’s trend to get the best investing results, as you don’t want to end up buying a stock at its peak and selling for less later.
- Make your first investment. You’ve done your investment research, set a budget that works for you, found an online broker, and confirmed that we’re in a market uptrend. Now simply log into your online brokerage account, type General Electric’s ticker symbol (GE), check that the stock’s price works for your strategy (which in this case would be to buy low), then click buy. Congratulations, you’ve just bought General Electric stock.
Ways to invest in General Electric
You can buy, sell, and trade shares of General Electric online in a bunch of different ways, but the two most important to know about are:
Share-dealing involves buying and holding shares for an extended period of time, in the hopes of a larger profit as the company grows in size and value. It’s a longer-term investing method than trading shares, which has a goal of making a quicker profit and reacting to market fluctuations as soon as possible.
- Pros: Share-dealing gives you the freedom to focus on fundamentals, without necessarily needing to be an expert in stock chart analysis; the most important thing is how you believe a stock will perform in the long term, rather than what the graph is doing today. Also, if General Electric shares start rising, holding the stock for longer could lead to big gains.
- Cons: Some of your capital will be tied up in General Electric stock for a long time, so you’ll have less money left over to pursue other investment opportunities. If General Electric’s stock starts falling after you buy, you’ll face a tough decision: cut your losses, or sit through a potential correction that could see your stocks end up being worth less than you bought them.
A CFD (which stands for contract for difference) is an investment derivative that lets you speculate on the price movement of investment assets, such as shares of General Electric, without actually owning the shares. When CFD trading you own a contract based on the amount you’re willing to pay for a stock at a specific time, but you don’t actually own the underlying asset.
- Pros: CFD trading gives you the opportunity to trade with leverage, meaning you can put down just a small percentage of the total trade value if you like. When trading with leverage, the size of your potential gains goes way up if you correctly guess the direction of the investment asset you’re betting on.
- Cons: Just as CFD trading increases the size of your gain if you guess right, it leads to much bigger losses if you guess wrong. Alos, if you leave a leveraged CFD position open for more than a day, you’ll usually have to pay overnight fees. CFD trading also means you lose all stock voting rights, plus the dividends that come with owning shares of certain companies – they allow you to trade quickly and at high volume, but don’t actually give you a stake in the company’s stock that you’re trading.
In order to be a more well-rounded investor, it’s good to get to know several different trading and investing methods. Read our online guides, news articles, and educational courses to increase the number of options available to you. If you’re ready to buy, click the links above. Otherwise, keep reading and we’ll explain things further.
How to buy, sell, and trade General Electric shares for beginners
If you’re a beginner thinking about getting into General Electric stock, here are some trading methods you should know:
Online brokerage firms provide trading platforms that allow you to buy shares with just a few clicks, without paying exorbitant fees. When buying shares, the goal is to hold for a longer period of time. To buy shares, log in to your online brokerage account, type General Electric’s ticker symbol, then make your purchase.
To make a profit selling shares, you want to sell at a higher price than your buy price; the bigger the gap between those two price points, the bigger your profit. You can make money by holding for as long as possible for the biggest possible profit, or by selling more quickly to preserve profits. Selling is also a sound approach when the value of a stock you’re holding goes south and you want to cut your losses before they become overwhelming.
You can trade shares with either a conventional online broker or a CFD broker, depending on how you want to invest. CFD-brokered trades allow you to trade with leverage, which has advantages for experienced investors, but also carries significant risk. Also, be aware of the overnight fees that CFD brokers often charge.
Our top tips for investing in shares of General Electric
If you’re just starting out as an investor and have decided you want to buy General Electric stock, then here’s a quick checklist to go through:
- Know your budget. You should never invest more than you can afford to lose, especially when you’re new to the world of investing.
- Choose a strategy that works for you. Find an investment strategy that fits your goals. That means making sure you don’t take on unnecessary risk, or dive straight in to complicated trading methods before taking the time to understand them. It also means deciding what your goals are: do you want to make money short-term by trading, or build a long-term portfolio by buying shares?
- Stick to an investing plan and don’t react to emotions. A sound investing plan will help you overcome emotional reactions that can prompt you to make ill-advised decisions under extreme market conditions. Always think with your head.
- When market conditions change, your approach should too. Not reacting to emotions doesn’t mean ignoring changes in the market. Keep a cool head and analyse how the market is behaving – if the stock market is falling and you think it will continue to do so, then it’s a good time to sell your stock and buy again when prices are lower.
- Learn from your mistakes. Every single investor makes mistakes, it’s just important to learn from them. Review your trades, identify what went wrong, and make a plan that will allow you to do better next time.
What should I consider before buying, selling, or trading General Electric stock?
When investing in General Electric stock, it is helpful to bear the following points in mind:
- Budget size. The larger your budget (say, $10,000 or more), the more creative you can get when trading – with day trading and CFD trading becoming more viable options, thus opening up more potential trading platforms for you to use. If you have a smaller budget (around $1,000), a simple buy transaction with an online broker makes sense as overnight fees that come with trading will eat up more of you initial capital amount.
- Investment options. Avoid risky investment strategies when you’re just starting out – stick to the basics and build both confidence and capital. You can also use stop-loss orders to protect your investment. Let’s say you buy shares of General Electric at $7 per share. You can then put in a stop-loss order at $6.30, which instructs your broker to sell your stocks automatically if the stock price falls that low. That way if General Electric’s stock falls (adding to its recent losses), you can’t lose more than 10%.
- Market conditions. When a bear market begins, defensive investment strategies make more sense than taking a risk by buying stocks – as generally you would expect stock prices to keep falling, reducing the value of your investment. On the other hand, if the market’s doing well, your chances of General Electric’s stock going up get better and it’s a better time to buy stock.
- Know your investing goals. Trying to make money quickly? Then day trading could be for you. Looking for a longer term strategy to build wealth in the future? Then share-dealing is the best option. By keeping your goals in mind, you can craft a strategy to get you financially where you want to be.
- Follow emerging trends. Once one of the most innovative companies in the world, GE has been lapped by competitors over the years, leading to steep losses. The company will need to find a way to revive its former innovative results in order to regain its foothold as a blue-chip company. When investing your money in a company, you should follow news that could affect the value of your stock.
What is General Electric?
Founded in 1892 by a group led by Thomas Edison, GE operates significant businesses in the fields of lighting, aviation, healthcare, and finance. GE was the world’s most 14th-most profitable company as recently as 2011, before it saw a significant decrease in profitability. For more information on the company, including charts, live prices, and analysis, visit Invezz’s stock price page for General Electric.
Try some of our stock market courses for beginners
To learn more before investing, peruse our easy-to-follow educational courses. That way you’ll be better prepared to buy shares of General Electric and build a sturdier financial future.