Eyeing up an investment in GlaxoSmithKline? Make sure you know the fundamentals of stock market investing before you take the plunge. We’ve produced this page, and many more educational articles, with the aim of teaching you how to become a savvy investor. If you’re ready to start investing, follow the helpful links below and move on to your first trade. If you could use a bit of guidance before investing, read on.
Buy GlaxoSmithKline stock, right now
Ready to invest in Glaxo’s stock? Click the links below to help you choose the right online broker. Our helpful guides will also show you the best investment choices, and how to try each of them.
Trade Glaxo shares, right now
If you’re not keen on long-term investing, you could try trading shares of Glaxo instead. When you trade shares, you want shorter-term profits, in the form of buying and selling quickly. We’ve reviewed a bunch of low-fee online brokers that work best for higher-volume trading.
How to buy Glaxo Smith Kline stock in 7 simple steps
Becoming a successful stock investor takes time and patience. Before you buy shares in GlaxoSmithKline, do your research on both the company and the stock’s history. You also want to gauge how the stock market is performing. After all of that is done, choose your preferred method of investing.
When starting out as an investor, try doing so with less money. As you gain experience, you can put invest more money, and try more complicated investments. Here’s a checklist to consider before you buy GlaxoSmithKline stock.
- Know the company. What is Glaxo? How did it grow to become one of the world’s leading pharmaceutical companies? How’s the company’s revenue and profit growth progressing? Get to know the company, so you’ll better understand the investment opportunity.
- Learn the basics. That includes learning key terms that go with buying stocks, such as bid price and ask price. You’ll also want to understand measures of fundamental strength, such as return on equity and profit margins, as well as the different ways you can buy Glaxo’s stock, including share-dealing and trading.
- Share-dealing vs Trading. When share-dealing, you buy shares in a company then sell at a higher price, or in some cases make money from dividends (if it’s a company that issues dividends). Trading shares is a short-term approach that often entails buying and selling shares on the same day (day trading). When day trading shares in Glaxo, you’re better off paying close attention to the stock’s chart than worrying about the company’s long-term future.
- Set a budget. When you start investing, start with a smaller budget, for instance £1500-£2000. Glaxo currently trades around £1800 a share, so you can buy one share with your allotted budget. As you acquire knowledge and experience, you can opt to invest more.
- Choose a broker. There are thousands of avenues you can go through to invest. Ideally, you’ll pick an online broker with a good reputation that offers an easy-to-use platform and low transaction costs.
- Evaluate the stock market. When the market moves into a strong uptrend (a ‘bull market’), most stocks will follow suit. When the market takes a sharp downward turn (a ‘bear market’), most stocks will go down. Follow the broad market’s trend, rather than trying to fight against it.
- Make your first investment. You have a better read of Glaxo’s business. You understand how investing works. You’ve decided on your budget and found the right broker, and confirmed that the market’s on the rise. Log in to your online brokerage account, type Glaxo’s ticker symbol (GSK), make sure it’s trading at a price you like, then buy. Congratulations, you’ve successfully bought Glaxo shares.
Ways to invest in Glaxo – share-dealing vs trading
There are multiple options if you’re planning on buying, selling or trading shares in Glaxo online. Let’s take a closer look at some of them:
Share-dealing involves buying shares in a company, a longer-term approach than trading shares for a quick profit.
- Pros: You can focus on the company’s fundamental strengths rather than worrying too much about technical analysis of a stock chart. if Glaxo’s stock starts going up, holding for longer could lead to a big profit.
- Cons: Your money’s tied up for longer, so that capital won’t be accessible to make other trades; if Glaxo’s stock starts plunging after you buy it, you’ll need to decide whether you want through a potentially nasty correction.
CFD means contract for difference. A CFD is an investment derivative that allows you to make bets on the price movement of an individual asset. Those assets can include forex, commodities, or shares of Glaxo. When CFD trading, you don’t actually own the asset you’re trading.
- Pros: With CFDs, you can put in just a percentage of the total trade value, with the CFD broker covering the rest (this is called trading with leverage); when trading with leverage, you make more than you would if you only traded with your own money, assuming the stock goes up.
- Cons: Just as trading with leverage makes you more money if a stock rises, it also swells the size of your loss if the stock falls; if you leave a leveraged CFD position open for more than a day, you pay overnight fees; when CFD trading, you lose the voting rights and potential dividends that can come with actually owning shares of the company.
The more you know, the easier it will be to make money trading or investing in shares of Glaxo. Read our guides and courses to boost your knowledge. If you’re ready to start buying, click on the links above.
How to buy, sell and trade Glaxo shares for beginners
Contemplating your first foray into the stock market? Here’s a quick introduction to buying, selling and trading shares.
You can buy shares by going through an online broker. Buying shares is a wise move if you’re looking to buy and hold. Log onto your online brokerage account, type in the ticker symbol of the stock you like, then click Buy. Now you own those Glaxo shares you’ve been coveting.
When selling shares, sell at a higher price than your buy price and you’ll earn a profit. But, beyond that simple principle, there are different approaches to consider. You can try to hold shares for as long as possible, aiming to sell later and nab the biggest possible profit. Alternatively, if you see that your Glaxo stock is already up on the price you bought at and the market is weakening, you might be wise to sell and protect your gains.
You can trade shares through a conventional online broker or with a CFD broker. If you choose a CFD broker, know the risks that come with leveraged trading and factor in the extra fees that CFD brokers charge.
Our top tips for investing in shares in Glaxo
Hopefully you now have a better idea of how to invest. Here are some more points to remember:
- Know your budget. Don’t go beyond your means when you’re just starting out. Be conservative at first. You can always raise the size of your budget slowly as you gain more experience.
- Choose the right approach. Make sure your investment strategy fits your goals, and the amount of risk you’re willing to take.
- Stick to an investing plan and don’t react to emotions. Follow a sound plan and you’ll be more likely to succeed. Emotions such as fear and greed can muddle your mind and lead to bad decisions.
- If market conditions change, be ready to pivot. When the market falls, don’t let your money evaporate in the process. Keep the state of the market in mind when making investing decisions.
- Learn from your mistakes. Everyone makes mistakes, that’s normal. The key is learning lessons along the way. Review your mistakes, then go with a different approach so you can do better next time.
Unsure which platforms to use?
Not sure where to go from here? That’s OK. Here’s a list of additional considerations to help you be ready to go:
- Budget size. If you have a budget of only £2000, it might make sense to limit the number of trades you make. You can keep things simple by buying one Glaxo share to start. If you have a larger budget (for instance, greater than £10,000), you have more options to work with. Those options can include day-trading, CFD trading, and other strategies.
- Risk assessment. Managing risk requires skill and experience. Once you have a bit more experience under your belt you can try out riskier investment strategies and more complex investing options. You might, for instance, decide to sell shares in Glaxo short. When you sell shares of a stock short, you’re betting that the price will go down, rather than up. Another option is to buy shares then protect your investment with a stop-loss order. Say you buy shares in Glaxo at £1800 per share and put in a stop-loss order at £1620 per share, you won’t lose more than 10% on your investment.
- Market conditions. If the market starts to fizzle, more defensive investment strategies, such as bonds or commodities, can become good alternatives to growth stocks. On the other hand, if the market’s doing well, you can simply buy Glaxo shares.
- Know your investing goals. If you’re trying to make money quickly, day trading could be a good option for you. If your investing time frame is longer, you may be better off buying shares and hoping that the strength of the company will last.
- Follow emerging trends. Technology constantly evolves, which creates new investment opportunities. If you plan to buy and hold Glaxo’s stock, you’ll want to make sure the company is protecting its market share by continually innovating and releasing new pharmaceutical products.
What is Glaxo?
Glaxo is the world’s seventh-largest pharmaceutical company, with nearly 100,000 employees and 2018 revenue exceeding £30 billion. For more information on the company, including charts, live prices, analysis and more, visit our Glaxo stock price page.
Try some of our stock market courses for beginners
Not yet ready to invest? It’s natural to have doubts. You will learn a lot more about investing with our easy-to-follow educational courses. Once you’ve absorbed the lessons from those courses, you’ll be better equipped to buy shares in Glaxo.