Looking to get involved in buying and trading shares on the stock market? Investing in Nike shares could be for you. We’ll help you learn the key investment principles you’ll need to invest in Nike, or any other stock. We’ve produced this page, and many other educational articles, to help you become prepared to trade stocks successfully.
If you’re ready to invest in stocks and shares, click the links below. Or if you need more time to get to grips with stock market trading, keep reading below.
Compare the best platforms to invest in Nike shares
The links below will direct you to the best online brokerage platforms that enable you to buy Nike shares today. Buying stocks is a great option if you want to invest your money for the long-term in the hope of making profits as Nike’s stock value increases over time.
Trade Nike stock, right now
If you’re looking for a shorter-term strategy than buying shares, then trading Nike stocks is the best option. Simply follow the links below to go straight to the best places to trade Nike stocks and start putting your trading strategy into action.
How to buy Nike stocks in 7 simple steps
It is essential to get to grips with the basics before investing in any stock. Here’s a seven-step guide to buying Nike stocks.
- Get to know the company. Nike has grown into one of the largest footwear and apparel companies in the world. The better you understand how their business model has achieved this, along with Nike’s current operations and financial situation, the better you can understand how that growth occurred – and whether or not it might continue.
- Learn the basics. To become a more successful investor, you’ll want to learn the key investing terms and principles of investing. Our educational courses on investing and trading will walk you through everything you need to know to become a successful investor.
- Decide if you want to be share-dealing or trading. Share-dealing is a buy-and-hold strategy in which you buy Netflix shares and hold for a longer period, aiming for big long-term gains delivered by consistent increases in stock value over time. When share-dealing, you make money from selling at a higher price than your buy price or from dividends (which are usually issued quarterly if the company in which you are investing pays dividends to investors). Trading shares is a shorter-term approach to investing than share-dealing. When trading Nike stock, the most important thing to master is reading and analysing stock price charts (this is also known as technical analysis). In a short timeframe, technical analysis is far more relevant to your investing success than the fundamental analysis of determining a company’s future potential.
- Set a budget. When you start investing, begin with a smaller budget and keep to it. This will help you be sensible with your strategy and prevent you from losing too much money if things don’t go well. We recommend something like £1,000 for a starting investor budget . Nike trades around $85 per share, so you can buy 10-12 shares with roughly 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 about the transaction costs and overnight fees you can incur when trading stocks.
- Choose a broker. In order to buy Nike shares, you’ll need a stockbroker. Low transaction costs are a must for any competitive online broker, as are an easy-to-use platform and a strong reputation. Make sure the broker you choose offers good value and good customer service for the type of investing you want to be doing (buying or trading).
- Check to see how the stock market is performing. Most stocks tend to rise in a bull market, and fall in a bear market. Whether you’re going long (buying and holding, in the hopes of the stock going up), or going short (betting on a stock to drop in price), follow the prevailing market trends for your best shot at success.
- Make your first investment. You’ve researched Nike’s business and scrutinised its stock. You’ve then set your investing budget, found an online broker that works for you, and confirmed that the market is moving in the direction you want. Now all you need to do is log into your online brokerage account, type in Nike’s ticker symbol (NKE), check that the stock price suits your goals, then buy.
Ways to invest in Nike
You can buy or trade shares of Nike online in multiple different ways, but by far the most prevalent and important to understand are share-dealing and CFD trading.
The goal of share-dealing is to buy and hold shares for the long haul, with the goal of making bigger profits. It’s a longer-term investing method than trading shares, which is a higher-frequency approach meant to deliver quicker gains.
- Pros: Share-dealing nets big gains if you can hold onto a winning stock and ride out the market’s little blips as its value increases over time. This is why when share-dealing it is important to dig into a company’s fundamentals, rather than obsessing over short-term (say, 15-minute stock chart) technical analysis. You’re looking for real value increases over a long period of time, which gives you space to look at the bigger picture.
- Cons: When share-dealing, you’re pursuing one investment opportunity and as a result might be missing out on others, as your money will be tied up in Nike stock for a while. If Nike’s stock starts falling sharply after you buy, you’ll also be put in an uncomfortable situation: deciding whether to cut your losses and sell before the market falls further, or try and ride it out and hope the stock climbs in value again in the future.
A CFD (contract for difference) is an investment derivative that lets you speculate on the price movement of an investment asset, such as Nike stock, without having to own it fully. CFD trading entails owning a contract for the asset in question, but not the asset itself.
- Pros: CFD trading enables you to trade with leverage, meaning you just put down a small percentage of the total trade value but can then trade with much larger amounts as the CFD broker will cover the rest of the amount. Trading with leverage produces a much bigger profit if you make a successful trade.
- Cons: As is usually the case, any strategy that maximises gains when things go well alos maximises losses when they don’t – and CFD trading is no different. If the market falls suddenly, you can quickly rack up large financial losses, so we don’t recommend that beginner investors trade with leverage. CFD trading also can incur overnight fees, and means you lose both stock voting rights and the dividend payments – which you have access to with some stocks if share-dealing rather than trading.
These are just a few of the investment methods you can learn to increase your investing knowledge. Read our online guides, news articles, and educational courses to get the full picture and improve your skills as an investor. If you’re ready to buy, simply click the links above.
How to buy, sell, and trade Nike shares for beginners
For beginner investors, the following are the three most important terms to understand before investing in Nike.
Buying Nike shares
The purpose of buying Nike shares is to hold them for a long period of time and reap the benefits of the company in which you have invested (in this case Nike) rising in value over time. To buy Nike shares you need to register with an online broker. Once you have done that, simply log into your online brokerage account, type Nike’s ticker symbol, and buy.
Selling Nike shares is also done through the brokerage platform on which you originally bought the stock. You might want to sell your shares after a long period of time that has seen them grow, in which case you can cash out and claim your profits, which you might then use to invest in another promising company. Conversely, you might want to sell if the market takes a downturn to limit your losses.
For a more short-term strategy that doesn’t leave your capital tied up in Nike stocks, you can trade Nike shares with either a conventional online broker, or a CFD broker. With CFD brokers you can trade with leverage, which allows you to make large profits if you’re right about whether a stock will rise or fall – however this also entails large losses if you’re wrong and beginner investors shouldn’t trade with leverage until they have some experience trading shares.
Our top tips for investing in Nike stock
When investing in Nike stocks – or any stocks for that matter – these are the Invezz team’s top tips
- Know your budget. Don’t invest more than you can afford to lose, and always be conscious of the budget you have set. From the outside it can seem that large trades are the key to success, but in terms of long term growth, managing your losses is fundamental to investing.
- Choose a strategy that works for you. Pick an investment strategy that fits your goals; whether that’s a long-term aim such as building a portfolio of stocks for retirement through share-dealing, or trying to make more money in the short term from day trading. Then also be sure to keep things simple until you’re experienced enough to try more intricate approaches to investing.
- Stick to an investing plan and don’t react to emotions. Build and follow a sound investment plan so that you can make calm, calculated decisions instead of succumbing to emotions. Fear and greed can cause many investors to make rash decisions under extreme market conditions.
- When market conditions change, change approach. When the stock market starts falling, be ready to sell your stocks if a bear market kicks in, or to invest in more stocks if the market starts trending upwards after a period of stock devaluation. Again, considering point 3, this should not be an emotional response – rather, keep a cool head and realise when the market is favourable and unfavourable to investors, then act accordingly.
- Learn from your mistakes. Making mistakes is natural, everyone makes them. What matters most is that you learn from those mistakes. Review your trades and analyse what went wrong. That way you can be better positioned to profit next time.
What should I consider before buying, selling, or trading Nike stock?
This is a breakdown of what you always want to bear in mind before investing your money in Nike stocks.
- 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 and can help you create a solid investment foundation from which to build. If you have a bigger budget (£10,000 or more), you’ll have more trading options at your disposal and more potential trading strategies and platforms to use as a result – partly because any potential overnight fees or charges that come with trading won’t affect the value of your trades massively.
- Risk assessment. Avoid risky investment strategies at first, you want to build up experience rather than lose money trying new tactics too early on. It’s also important to use stop-loss orders to protect your investment, whether you’re a novice or an expert investor. If you buy Nike shares at $85 per share, you can put in a stop-loss order at $76.50, thus capping the size of your loss at 10%. Stop-loss orders work by automatically selling your shares at a specific price if they fall that low, to insulate you from any further losses.
- Market conditions. When a bear market starts, moving into cash or buying defensive assets such as bonds and certain commodities is usually a safer strategy than buying stocks. If the market’s in an uptrend, that’s a better time to buy Nike shares.
- Know your investment goals. Day trading or swing trading are designed to produce quicker gains. Buying and holding shares is a better approach if you’ve got the patience and temperament to hold for bigger potential gains over time. Whatever approach you want to take, remember it and stick to investments that fit with your broader aims.
- Follow emerging trends. Nike has grown to a global powerhouse as a leading maker of athletic shoes, but you need to keep up-to-date with news that affects the industry in order to get an idea of how likely they are to stay at the top. See how Nike adjusts to changing trends, and you’ll have a good idea of the potential future value of Nike’s stock.
What is Nike?
Nike is one of the largest footwear and apparel makers in the world, with reported revenue topping $36 billion and $4.4 billion in operating income in its most recent reported fiscal year. For more information on Nike, including stock charts, live prices, and in-depth analysis, visit the company’s stock price page right on this site.
Try some of our stock market courses for beginners
To learn more about investing, check out our educational courses. Then you’ll be better prepared to buy, sell, and trade shares of Nike and to build a successful investment strategy going into the future.