Thinking about getting into stock market investing? Buying, selling, and trading shares of a trusted UK brand like Sainsbury’s could be a good place to start. Here, you’ll learn the key investment principles that will prepare you to invest in Sainsbury’s, and any other stocks that interest you. We’ve produced this page and other educational articles to help you learn how to trade stocks successfully.
If you’re ready to get started, click the links below. If you need more time to study before making your first trade, keep reading.
Buy Sainsbury’s shares, right now
If you’re ready to buy Sainsbury’s shares right away, simply follow one of the links below to go to one of our trusted online broker platforms. Once you set up an account, you’ll be able to buy Sainsbury’s quickly and easily.
Trade Sainsbury’s stock, right now
Trading shares is a shorter-term strategy than buying Sainsbury’s shares. You’re trying to make money faster by trading more frequently, as you would when day trading or swing trading. By visiting one of the platforms below, you’ll be able to start trading Sainsbury’s stock in no time.
How to buy Sainsbury’s shares in 7 simple steps
It pays to understand some basic principles of investing before you dive into buying Sainsbury’s shares. When investing, you always want to be as prepared as possible, so make sure to go through the following 7 steps:
- Get to know the company. Sainsbury’s is the second-largest supermarket chain in the UK. Once you understand how Sainsbury’s rose to that status, how it’s competing today, and what its plans for future growth are, you’ll have a better idea of what to expect when buying shares of Sainsbury’s.
- Learn the basics. Becoming a successful investor requires that you become familiar with important investment terms and principles. Our educational courses on investing and trading will guide you through the investment process.
- Decide if you want to be share-dealing or trading. Share-dealing is a buy-and-hold strategy. The idea is to buy shares of a company, hold them for as long as possible, and hopefully land a big gain by selling at a point where the stocks have risen in value over time. When share-dealing you make money from selling at a higher price than your buy price. You can also do so by collecting dividends, assuming the stock you own issues dividends. Trading shares is a shorter-term approach aimed at turning around quicker profits. When trading shares of Sainsbury’s (or any other stock), you want to know how to read stock charts. When you’re opening and closing trades within a span of a few days or a couple of hours, technical analysis is more likely to help your chances of success than fundamental analysis such as examining a company’s long-term business strategy.
- Set a budget. When you start investing, do so with a smaller budget – something like £1,000. Sainsbury’s stock currently trades around £200 per share, so you can buy five shares with that starting amount. As you gain experience and grow your capital, a bigger budget (for example, £10,000 or more) will enable you to buy more shares. Bigger budgets also make transaction costs easier to swallow on some trading platforms, and higher-frequency trading therefore becomes a more viable option.
- Choose a broker. To buy Sainsbury’s shares or to buy other stocks & shares, you’ll need a reliable stockbroker. Picking a broker that fits your needs and goals is an important step before you start your investment journey. Look for brokers that offer easy-to-use platforms and low transaction costs.
- Check how the stock market is performing. Most stocks rise during a bull market, and most stocks fall during a bear market. Follow the broad market’s trend, rather than trying to fight against the current – you’ll see the most success if you can correctly predict which way the market is moving and act accordingly.
- Make your first investment. You’ve researched how Sainsbury’s does business and analysed Sainsbury’s stock. You’ve established your investing budget, found a good online broker, and confirmed that the market is moving in the right direction. Now all you have to do is log into your online brokerage account, type in Sainsbury’s ticker symbol (SBRY), check that the bid and ask prices for the stock look good to you, then buy.
Ways to invest in Sainsbury’s
Share-dealing and CFD trading are the two most commonly used ways of investing in Sainsbury’s stock. We’ll take you through the difference right here.
When share-dealing you are endeavouring to buy Sainsbury’s shares and hold them long-term, with the idea of landing bigger profits by accruing value over time. Share-dealing is a longer-term strategy than trading shares, with your capital tied up in the stocks you have bought for a significant period of time until you decide to sell.
- Pros: Share-dealing can deliver impressive returns if you can manage to hold onto a winning stock and ride out stock market fluctuations. Share-dealing also gives you more time to dig into a company’s fundamentals, since you don’t have to worry as much about short-term stock charts.
- Cons: When you buy and hold a stock while share-dealing, you tie up your money in one investment, preventing you from using your money for other investments. If Sainsbury’s stock starts falling sharply and the market goes south after you buy, you could face big losses unless you take the hit and sell for less than you originally bought the stocks for.
A CFD (stands for contract for difference) is an investment derivative that lets you speculate on the price movement of an investment asset, be it forex, commodities, or shares of Sainsbury’s. CFD trading entails owning a contract for the asset in question, but not owning the asset itself. Through CFDs you can trade quickly and with leverage, but you lose some of the benefits of share-dealing.
- Pros: CFD trading enables you to trade with leverage, which means you can trade large amounts while only having to put down a small percentage of the total trade value, with the CFD broker covering the rest of the trade. Trading with leverage produces a much bigger profit if your prediction on which way the stock will move proves to be correct.
- Cons: When CFD trading with leverage, you are also increasing your risk, because the size of your loss will go way up if you’re wrong. We do not recommend that beginner investors trade with leverage. CFD trading also means you lose stock voting rights, as well as the dividends that come with companies that issue dividends. Another thing to bear in mind is that if you leave a CFD position open for more than a day, you’ll pay overnight fees.
These are two of the strategies you can use when investing in or trading shares of Sainsbury’s. Check out our online CFD guides & educational courses, news articles and market analysis for lots more insight, and if you’re ready to buy, sell, or trade shares of Sainsbury’s – click the links above.
How to buy, sell, and trade Sainsbury’s shares for beginners
If you’re new to all this, here are the basic concepts to know when buying, selling, and trading shares:
Buying Sainsbury’s shares
Online brokerage firms allow you to buy Sainsbury’s shares quickly and inexpensively. Buying shares usually implies that you’re trying to hold for a longer period of time, aiming for bigger gains. To buy shares all you have to do is log into your online brokerage account, search via ticker symbol for Sainsbury’s, and buy the company’s shares.
Similarly to buying Sainsbury’s shares, selling your stocks is a simple process done through your online brokerage platform. Your biggest profits when selling Sainsbury’s shares will likely come after a long period of holding and waiting, assuming the stock is riding a long-term uptrend. You can also choose to sell more quickly for a smaller profit, such as when you’re swing trading or just trying to get a quick win before the stock turns south. You can also choose to sell when your stock starts to fall, in order to cut your losses and prevent a major setback.
When trading Sainsbury’s shares, you can choose a conventional online broker, or a CFD broker. Leveraged CFD trades produce more volatile results, with either the gains or losses much larger than with a conventional broker. Before trying leveraged trading, get used to trading and the general world of stock market investing, as you can lose all your money fast if you don’t know what you’re doing. CFD brokers usually charge higher transaction costs than regular online brokers – including overnight fees for leaving positions open longer than a day.
Our top tips for investing in Sainsbury’s stock
Here are some helpful investing tips to know before getting started with an investment in Sainsbury’s stock:
- Know your budget. Figure out what you’re able and willing to lose, then make sure not to venture more than that amount. You want to make sure to limit the size of your losses, so that you can preserve your capital for future trades and stay in the game. We discuss ways to limit losses a little further below.
- Choose a strategy that works for you. Pick an investment strategy that fits your goals, and make sure to stick to it. Avoid overly complex investment strategies until you’ve gained more experience as an investor, as well as a bigger amount of capital to play with.
- Stick to an investing plan and don’t react to emotions. If you construct and follow a sound investment plan, you’ll be better able to make calm, intelligent decisions instead of letting emotions such as fear and greed cause you to panic and act rashly.
- When market conditions change, be ready to change course. If a bear market starts to form, you should strongly consider selling your stocks, or at least paring back your positions to protect yourself from likely falls in stock value. When a bear market ends and a new uptrend begins, you can always buy back in at that point, even ending up with more stock for your money when the market recovers again. Keep a level head and react to what the market is telling you.
- Learn from your mistakes. From complete beginners to experts with years of experience, we all make mistakes – you just have to learn from those mistakes. Review your trades to figure out what went wrong. That way, you’ll be better prepared to make better decisions next time.
What should I consider before buying, selling, or trading Sainsbury’s stock?
If you’re ready to buy Sainsbury’s shares, here is a list of what you want to ensure you bear in mind:
- Budget size. If you have a smaller budget (around £1,000), a buy-and-hold strategy with an online broker saves you money on transaction costs, which matters more when you’re working with a smaller budget. If you have a bigger budget (say, £10,000, £20,000 or more), more trading strategies and more trading platforms become open to you as options, including day trading with a conventional broker as well as CFD-brokered trades.
- Risk management. Using stop-loss orders will help you protect your capital and preserve your psyche, so you can live to fight another day if the market takes a sudden downturn. Say you buy shares of Sainsbury’s at £200 per share. In that case, you can put in a stop-loss order at £180, capping the size of your potential loss at 10% because the instant the stock price hits £180, your shares will automatically be sold.
- Market conditions. Always keep an eye on how the market is moving. When a bear market starts, moving into cash or buying defensive assets such as bonds and certain commodities is safer than buying growth stocks. If the market’s in an uptrend, that’s a better time to buy shares of companies like Sainsbury’s.
- Know your investing goals. Day trading and swing trading are faster-moving trading approaches, geared toward banking faster gains. Buying and holding shares can be a viable strategy in a bull market, assuming you’ve got the patience to sit on shares for an extended period of time. Knowing where you want to get to is the first step in achieving those goals.
- Follow emerging trends. While Sainsbury’s claims one-sixth of the UK’s grocery store market share, it will need to fight off increasingly popular grocery delivery companies and other new trends to keep performing well. If you’re investing in any company, you always want to keep up-to-date with news that affects the sector in which it operates.
What is Sainsbury’s?
Founded in 1869 in London, Sainsbury’s operates 2,300 Sainsbury’s supermarkets, convenience stores, and stores branded with its affiliate company Argos’ name. For more information on Sainsbury’s, including stock charts, live prices, and in-depth analysis, visit the company’s stock price page on this site.
Try some of our stock market courses for beginners
If you’re new to investing, you have a lot to learn! Check out all of our easy-to-follow educational investing courses, right here on this site.