Ready to try investing in the stock market? Buying shares of Lyft could be a great way in. With Invezz’s help you can learn the key investment principles you’ll need in order to invest in Lyft – or any other stock for that matter. We’ve produced this page, and many other pieces of educational content, to help you be prepared to trade stocks successfully.
Ready to invest? Simply click the links below to get started. Need more time to study first? Then keep reading.
Buy Lyft stocks right now
If you feel confident buying Lyft stocks and can hone a perfect investment strategy, then you’re ready to select a stockbroker to invest with:
Trade Lyft stocks right now
Trading shares is a shorter-term investment approach than buying and holding stocks. When trading shares of Lyft, you’re aiming to make money faster through frequent trading activities, as you would when day trading or swing trading. We’ve reviewed the best low-fee online brokers to help you make higher-frequency trades an maximise short-term gains.
How to buy Lyft stocks in 7 simple steps
Learning the ins and outs of both fundamental and technical stock analysis will help you come prepared to buy stocks like Lyft, and make profits along the way. Here are the seven steps we recommend going through in order to buy Lyft stock.
- Get to know the company. Lyft has been one of the biggest disruptors of traditional taxi services – particularly in the USA – though how it will fare against rival rideshare company Uber in the future remains an open question. Dig into Lyft’s operations and financials so you can better understand the company in which you are investing.
- Learn the basics. To become a more successful investor, learn as many key investing terms and principles as possible so you can have confidence you’re making the right moves. Invezz’s educational courses on investing and trading are a great place to start.
- Decide if you want to be share-dealing or trading. These are the two most prominent ways to buy, sell, and trade stocks. Share-dealing is when you buy shares of a company, with the idea of holding on for a big long-term gain. When share-dealing you can make money from selling at a higher price than your buy price, or through quarterly dividends – if the company in which you have shares pays these. Whereas, trading shares is a shorter-term approach than share-dealing, aimed at opening and closing trades quickly to take advantage of small movements in the value of stocks. When trading Lyft stock, you’ll want to get to grips with technical analysis: reading financial charts quickly and accurately. This is more relevant than fundamental market analysis when trading stocks, given the short timeframe in which you’ll own shares.
- Set a budget. When you start investing, begin with a smaller budget. We recommend an amount in the region of $1,000. Lyft trades around $27 per share, so you can comfortably buy 35 shares with that starting amount. As you gain experience and make more money, a bigger budget ($10,000+) will allow you to buy more shares, or make higher-frequency trades without worrying too much about transaction costs adding up as these will be a lower percentage of your budget.
- Choose a broker. Select an online broker that offers an easy-to-use platform, a strong reputation, and low transaction costs. Our guides and reviews will help you choose the right broker for your trading needs.
- Evaluate the state of the stock market. In a bull market, most stocks tend to rise. In a bear market, most stocks tend to fall. Follow the prevailing trend for your best shot at success, as you ideally want to be buying stocks when the market is low, and selling them once it has risen significantly.
- Make your first investment. You’ve researched Lyft’s business and scrutinised its stock. You’ve then set your investing budget, found an online broker, and confirmed that the market is moving in the right direction. Now all you have to do is go to your online brokerage account, type in Lyft’s ticker symbol (LYFT), check that the stock price is holding up well, then buy. Congratulations, you’ve just bought Lyft stock.
Ways to invest in Lyft
You can buy or trade shares of Lyft online in multiple different ways, with the following two methods being the most common and accessible:
Share-dealing involves buying and holding shares for an extended period of time, with the goal of making bigger profits as a company’s value rises over time. It’s a longer-term investing method than trading shares, which is a higher-frequency approach designed to deliver quicker gains to traders.
- Pros: Share-dealing can deliver big gains if you can hold onto a winning stock and ride out the market’s little blips as its value trends upwards over time. Share-dealing also gives you more time to dig into a company’s fundamentals, rather than obsessing over short-term technical analysis.
- Cons: Share-dealing comes with a degree of opportunity cost. As you are buying the shares to hold for a significant amount of time, some of your money will be tied up in those stocks and you therefore might miss out on other opportunities. Also, if Lyft’s stock starts falling sharply after you buy, you’ll be faced with the difficult choice of whether to cut your losses and sell, or to hold the stock and hope a market correction doesn’t damage the stock’s value too much.
A CFD (contract for difference) is an investment derivative that lets you speculate on the price movement of investment assets. With a CFD trade, you don’t own the underlying asset you’re trading (e.g. Lyft shares) – rather you hold a contract based on the value at which you bought it.
- Pros: CFD trading platforms usually offer the option to trade with leverage, meaning you only need to put down a small percentage of the total trade value, and the CFD broker covers the rest. Trading with leverage produces a much bigger profit if you make a successful trade.
- Cons: The exponential effect of CFD trading works for losses as well as profits; if the market falls then you can see your capital wiped out fast. Also If you leave a CFD position open more than a day, you’ll pay overnight fees. And finally, CFD trading means you lose stock voting rights, and the dividends that come with shares of certain companies.
These are just a couple of the investment methods you can learn to help you make money buying, selling, and trading stocks. Read our online guides, news articles, and educational courses to learn more. If you’ve read enough and want to buy stocks now, simply click the links above. Otherwise keep reading and we’ll explain where you might want to start.
How to buy, sell, and trade Lyft shares for beginners
If you’re totally new to investing in the stock market, then here are some terms it is essential to understand:
When buying shares, it is best to use online brokerage firms. These platforms allow you to buy shares quickly and at a low cost. When buying shares, the aim is to be holding them for a long period of time, ideally keeping them as part of a larger investment portfolio that rises steadily in value over time. To purchase Lyft stock, you’ll need to log into your online brokerage account, type Lyft’s ticker symbol, and buy.
When selling shares, you want to try and sell at a stock’s maximum value – which will usually be after a long period of the market increasing. You can also sell more quickly for a smaller profit, such as when you’re swing trading or just trying to put money back in your pocket to follow another investment opportunity that could be more lucrative. You can also choose to sell when your stock starts to fall, to cut your losses. Whatever your reason for selling, the process is very similar to buying stock: simply login to your brokerage account and select the stock you wish to sell, then press ‘sell.’
You can trade shares with either a conventional online broker that facilitates the buying and selling of stocks, or a CFD broker. CFD-brokered trades can be made with leverage to generate large profits, but also considerable risk to investors. Invezz doesn’t recommend that novice traders start trading with leverage until they have spent some time familiarising themselves with the stock market and used a free demo account to see how the process works.
Our top tips for investing in Lyft stock
Before buying your first Lyft stock, here are some tips from the Invezz team about what to consider:
- Know your budget. Don’t invest more than you can afford to lose – this is a general rule of investing which you should always bear in mind as there’s no such thing as a certainty when it comes to the stock market. Also, managing your losses is the key to preserving your gains.
- Choose a strategy that works for you. It’s important to pick an investment strategy that fits your goals. Take only as much risk as you can handle, and always bear in mind what you want to achieve. Finally, keep things simple; you can try more complex trades and tactics when you’ve acquired more experience.
- Stick to an investing plan and don’t react to emotions. Craft a sound investment plan so you can follow rational steps instead of succumbing to emotions. Fear and greed can cause you to make rash decisions under extreme market conditions.
- When market conditions change, change your approach. When the stock market starts falling, be ready to sell your stocks to protect you from further losses. This should not be an instinctive reaction – take a breath, analyse the market, and make sure you’re making a good move and not being emotional (see point 3).
- Learn from your mistakes. Making mistakes is natural, as long as you learn from those mistakes. Review your trades and analyse what went wrong. That way you can tweak your strategy so that next time you’ll be better positioned to profit in the future. Even the pros didn’t get everything right first time.
What should I consider before buying, selling, or trading Lyft stock?
These are the main points you always want to bear in mind when investing in Lyft stock – or any other stock for that matter:
- Budget size. If you have a smaller budget (around $1,000), a buy and hold strategy with an online broker lets you save on transaction costs, which is a big plus when you only have a small amount of money to work with. If you have a bigger budget (like, say, $10,000), you have more trading options at your disposal and more potential trading platforms to use as the fees will be negligible compared to the amount you’re trading.
- Risk assessment. Avoid risky investment strategies at first, and use stop-loss orders to protect your investment – whether you’re a novice or an expert investor. If you buy shares of Lyft at $27 per share, you can put in a stop-loss order at $24.30, thus capping the size of your loss at 10%. What the stop-loss order does is instruct your broker automatically to sell your Lyft stock if it falls to the designated $24.30 amount – protecting you from further losses.
- Market conditions. When a bear market starts, raising cash or buying bonds is safer than buying stocks, as it is likely the value of stocks will continue to fall. If the market’s in an uptrend, that’s a better time to buy shares of Lyft because you can be secure in the knowledge that their value is likely to increase.
- Know your investing goals. Day trading or swing trading are geared toward quick gains. Buying and holding shares is a better approach if you want to build larger profits in the long term and don’t mind having your capital tied up in investments in the stock market.
- Follow emerging trends. Lyft has already used an innovative approach to disrupt the taxi industry, but can it leverage its technology and its large fleet of drivers to produce consistent profits? Watch to see how Lyft adjusts to changing trends, and you’ll have a good idea of the upside of Lyft’s stock. In order to assess what you should do in regards to any stock, it’s good to keep up-to-date with news or market developments which could affect its value.
What is Lyft?
Lyft is a US-based rideshare company, competing with Uber and other platforms for supremacy in a market space that’s still fairly new. Lyft generated nearly $2.2 billion in revenue for its most recent reported fiscal year, but with a reported loss of net income just below $1 billion. For more information on the company, including charts, live prices, and analysis, visit Lyft’s stock price page.
Try some of our stock market courses for beginners
To learn more about investing, check out Invezz’s educational courses. Doing so will help prepare you to buy, sell, and trade shares of Lyft, and increase your investment knowledge in general so you can diversify your strategy.