If you’re thinking about taking the plunge into stock investing, buying shares in HSBC could be a good option. That said, buying shares isn’t guaranteed to return a profit, so make sure you know what you’re doing. We’ve produced this page, along with many more educational articles, to help you become a savvy investor before you buy HSBC stock. If you’re ready to start investing, follow the helpful hints below and make your first trade. If you don’t feel ready to get started, keep reading.
Buy HSBC stock, right now
If you want to invest in HSBC’s stock the links below present a choice of trustworthy online brokers. Our helpful guides show you the best investment choices, and how to get started with each of them.
Trade HSBC shares, right now
If long-term investing doesn’t interest you, you might choose to trade shares in HSBC instead. When you trade shares, you’re buying and selling within a short period of time, shooting for shorter-term profits. We’ve reviewed a selection of low-fee online brokers that make sense for this kind of rapid-fire trading.
How to buy HSBC stock in 7 simple steps
Becoming a successful stock investor takes diligence. Before you buy shares in HSBC, it’s important to do some research – look into how the company operates and the stock’s history. Try to get a feel for how the stock market’s performing too.
When starting out as an investor, it’s a good idea to commence with a relatively small amount of money. As you gain experience, you can invest more capital and try more complicated investment strategies. Here’s a checklist to review when buying shares in HSBC.
- Know the company. What is HSBC? How did it grow to become one of the biggest banks in the world? How are the company’s fundamentals – including revenue and profit growth – looking? Get to know the company, so you better understand your investment.
- Learn the basics. You’ll want to learn the key terms that go with buying stocks, such as bid price and ask price. You’ll also want to understand other measures of fundamental strength, such as return on equity and profit margins. Finally, it’s good to know the different methods you can use to buy HSBC stock, such as share-dealing and trading.
- Share-dealing vs Trading. When share-dealing, you’re simply buying shares in a company with the aim of selling at a higher price, or in some cases make money from dividends (if it’s a company that issues dividends to investors). Trading shares is a short-term approach that often entails buying and selling shares on the same day (also called day trading). When day trading shares in HSBC, read the stock’s chart closely, and don’t worry too much about the company’s long-term future.
- Set a budget. When you start investing, start with a smaller budget, for instance £1500-£2000. HSBC currently trades near £600 a share, so you can buy two or three shares with that budget. As you gain knowledge and experience, you can get more aggressive and invest more capital.
- Choose a broker. There’s no shortage of reliable online brokers out there. Aim to pick an online broker that offers a strong reputation, low transaction costs, and an easy-to-use platform.
- Evaluate the stock market. When the market moves into a strong uptrend (a ‘bull market’), most stocks will be similarly strong, rising in price; when the market turns sharply lower (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 now understand HSBC’s business a lot better. You have a feel for how to invest. You’ve found the right budget and the right broker for you. You’ve confirmed that the stock market is in good shape. Now log in to your online brokerage account, type HSBC’s ticker symbol (HSBA), make sure it’s trading at a price you like, then buy.
Ways to invest in HSBC; share-dealing vs trading
There are multiple options you can choose to buy, sell, and trade shares of HSBC online. Let’s look at some of them:
Share-dealing entails buying (and then holding) shares. It’s a longer-term approach than trading shares in an effort to bank a quick profit.
- Pros: You can focus on the company’s fundamental strength, rather than worrying about how to do technical analysis. If HSBC’s stock starts rising, holding the stock for longer could lead to big gains.
- Cons: Your money’s tied up for longer, so that capital isn’t accessible for you to make further trades. If HSBC’s stock starts plunging after you buy it, you’ll be faced with a tough decision – sell to avoid further damage or try to weather the storm of a rough correction.
A CFD is as contract for difference. It’s an investment derivative that allows you to bet on the price movement of an individual asset. Those assets can include forex, commodities and, yes, shares in HSBC. When CFD trading, you own the contract, not the actual asset you’re trading.
- Pros: With a CFD, you can put down just a percentage of the total trade value, and the CFD broker will cover the rest (this is called trading with leverage). When trading with leverage, you can make more than you would if you only traded with your own money.
- Cons: Just as trading with leverage makes you more money if a stock rises, it also means a bigger loss if the stock falls. Also, if you leave a leveraged CFD position open for more than a day, you might have to 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 better your chances of making money when you trade or invest in shares of HSBC. Read our online 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 HSBC shares for beginners
If you’re on the verge of making your first buy, here are some important things to know:
You can buy shares through an online broker. Buying shares makes sense if you’re looking to buy and hold for an extended period of time. Log onto your online brokerage account, type in the ticker symbol of the stock you like and click Buy. You own shares of HSBC.
When selling shares, you’ll need to sell at a higher price than your buy price to net a profit. There are different strategies you can use when selling shares. You can try to hold shares for as long as possible, aiming to sell later for the biggest possible profit. You might also observe that your HSBC stock is already up on the price you bought at, and that the market is weakening, and opt to sell and protect your gains.
You can trade shares with a conventional online broker, or with a CFD broker. If you choose a CFD broker, know the risks that come with leveraged trading and account for the extra fees that CFD brokers can charge.
Our top tips for investing in shares of HSBC
Hopefully you’ve now got a better grip of the basics of investing. Here are some additional points to remember:
- Know your budget. Don’t invest more than you can afford to lose when you’re just starting out. Take a kconservative approach at first and you can always raise your budget size as you gain more experience and expertise.
- 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 derail you from a sound thought process, so always be mindful of your mental and emotional state when making investment decisions.
- If market conditions change, be ready to pivot. When the market falls try to react incisively. Keep the state of the market in mind when making investing decisions.
- Learn from your mistakes. Everyone makes mistakes, even expert investors who’ve been doing this for many years. The key is to learn from those mistakes. Review every one of your trades, figure out what went wrong, then consider going 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 that should help:
- Budget size. If you have a budget of, say, £1500, it probably makes sense to limit the number of trades you make. You can keep things simple by buying just a couple of HSBC shares to start. If you have a larger budget (say, greater than £10,000), you have more options to work with, including day-trading, CFD trading, and other strategies.
- Risk assessment. Managing risk requires skill and experience keep things simple to start with and consider riskier investment strategies once you’re more established. Once you’re comfortable with the basics you might decide to mix things up by selling shares short. When you sell shares in a stock short, you’re betting that the price will go down, not up. The stop-loss is a useful way to protect your investment. Say you buy shares in HSBC at £600 per share. You can then put in a stop-loss order at £540 per share. That way if HSBC’s stock falls, you won’t lose more than 10% on your investment.
- Market conditions. If the market takes a turn for the worse, more defensive investment strategies, such as bonds or commodities, probably make sense. On the other hand, if the market’s doing well, it might be the right time to buy HSBC shares.
- Know your investing goals. If you’re trying to make money quickly, day trading could be a good choice. If your investing time frame is longer you might be better off betting on the strength of the company and adopting a long-term investment strategy.
- Follow emerging trends. Technology is always evolving, in every industry. This naturally creates new investment opportunities. If you plan to buy and hold HSBC’s stock, you’ll want to make sure the company is innovating and changing with the times.
What is HSBC?
HSBC is the world’s seventh-largest bank, with total assets exceeding $2.5 trillion as of the end of 2018. The company’s operations including investment banking, retail banking, and a wide array of other financial services. For more information on the company, including charts, live prices, analysis, and more, visit our HSBC stock price page.
Try some of our stock market courses for beginners
Not quite ready to invest? You’ll learn a lot more about investing with our easy-to-follow educational courses. Once you’ve absorbed the lessons from our courses, you’ll be better prepared to buy HSBC’s stock.