Thinking about investing in the stock market for the first time? Then buying or trading shares in Vodafone could be a good strategy for you. First, you should learn the key principles of investing; that way, you’ll be better prepared to make your first move and more likely to see success with your investment strategy. We’ve produced this page, and other educational articles throughout the site, to help you learn how to trade stocks like Vodafone successfully.
Ready to get started? Click the links below to get ready to trade. Need more time first? Then keep reading.
Buy Vodafone stock, right now
The links below will take you to the best platforms around that let you buy Vodafone stocks. These brokers are the best in the business and allow you to buy stocks and shares in a large number of companies often with no fees.
Trade Vodafone stock, right now
Trading shares is a strategy focused on quicker returns. Day trading and swing trading are two of the trading methods that give you an opportunity to pocket your gains faster than when buying and holding shares. The links below will take you to the platforms best-suited to helping you trade Vodafone stock.
How to buy Vodafone stock in 7 simple steps
If you’re planning on investing in Vodafone stock, these are the 7 steps that we recommend you follow:
- Get to know the company. Vodafone is one of the world’s largest telecommunications companies. Get to know how Vodafone attained that status and the competitive challenges that lie in store for the company in the future (such as the upcoming 5G rollout), and you’ll be better informed about whether you want to be investing your money in the company.
- Learn the basics. To become a successful investor, you’ll want to become fluent in key investing terms and techniques. Our courses on investing and trading will teach you all that, and more so you’re prepared for all eventualities.
- Decide if you want to be share-dealing or trading. Share-dealing refers to the practice of buying a stock, then holding on in search of achieving large gains in the long-term. Share-dealing enables you to make money by either selling at a higher price than your buy price, or collecting dividends (assuming the stock you buy issues dividends). When trading shares, you’ll want to learn to read stock charts. That’s because when making short-term trades, technical analysis is far more useful than fundamental analysis. You’re trying to make money from correctly predicting short-term market movements when trading, rather than assessing the long-term strength of the company’s stock.
- Set a budget. When you start investing, do so with a smaller budget so as to protect yourself from losing a significant sum. We would recommend something in the region of £1,000 when you’re starting out. Vodafone trades around £110 per share, so you can buy nine shares with your £1,000 initial investment. As you gain experience, you can use a bigger budget (£10,000 or more) to buy more shares and generate higher returns. You can also use that bigger budget to make more frequent transactions, without worrying too much about transaction costs, such as overnight fees on CFD trades, adding up.
- Choose a broker. Look for an online broker that suits your needs. The two most important traits for a broker are an easy-to-use platform and low transaction costs. We’ve reviewed lots of online brokers for you to consider, so you can make the right choice about which platform you want to use to buy, sell, and trade Vodafone stock.
- Check how the stock market is performing. Bull markets tend to cause stocks to rise, whereas bear markets tend to cause stocks to fall. You want to make sure you’re investing your capital at a time when stocks look set to rise and generate good returns.
- Make your first investment. You’ve done all the necessary due diligence and research, both into Vodafone as a company and into broad market trends. Now simply sign up for a brokerage account and login, then type in Vodafone’s ticker symbol (VOD), check that the stock is trading at a desirable price, then buy.
Ways to invest in Vodafone
The two most commonly-used ways to invest in Vodafone stocks are share-dealing and CFD trading.
Share-dealing refers to the practice of buying shares and keeping them for an extended period of time, with the aim of selling them for a larger profit after having benefited from their value increasing because of a market uptrend. It is a longer-term strategy than trading shares, which can be done within the space of a day or even less.
- Pros: Share-dealing can produce big profits if you have the patience to ride out normal market fluctuations and hold stocks as the market rises in the long term. Share-dealing also means you don’t have to worry about short-term stock charts, since weeks, months, and even years matter more than minutes and hours in terms of the value of your shares.
- Cons: When you buy and hold a stock for a long time, your lack of available capital may cause you to lose out on other investment opportunities. Alos, is Vodafone’s stock starts plunging after you buy it, you might need to cut your losses and sell at a reduced price to avoid being hit harder if the market keeps falling.
A contract for difference is an investment derivative that allows you to speculate on the price movement of an investment asset. CFD trading gives you ownership of a contract, but not the investment asset itself (e.g. Vodafone shares). This means you can trade faster and use extra trading methods, but also means you lose a few of the benefits of owning shares.
- Pros: CFD trading enables you to trade with leverage, where you invest with just a small percentage of the total trade value, with your CFD broker covering the rest of the value and allowing you to trade large amounts. Trading with leverage produces a much bigger profit if you correctly predict which way the stock (or other investment asset) is going to move.
- Cons: Just as the size of your potential gains rises when you trade with leverage if you guess right, the size of your loss will go way up if you’re wrong – so we strongly advise against leveraged trading if you are a beginner investor. CFD trading means you lose stock voting rights as well as dividends, since you own a contract for the stock, but not the stock itself. On top of this, if you leave a CFD position open for more than a day, you’ll usually have to pay overnight fees.
Check out our online guides, educational courses, and news articles for more information and analysis. If you’re ready to buy, sell, or trade shares of Vodafone, click the links above.
How to buy, sell, and trade Vodafone shares for beginners
Here are some introductory concepts for investors and traders just getting started:
You can buy shares quickly and inexpensively through an online brokerage firm. Buying shares usually means trying to hold them for longer, as you attempt to produce bigger gains. All you need to do is log into your online brokerage account, type in Vodafone’s ticker symbol, then you can buy as many shares as your budget allows.
You can sell shares through your online broker at any time, and it can be a good idea in a variety of scenarios. Your shares may have risen significantly in value over a long period of time, and you want to cash out and invest that money elsewhere. Or you can sell shares while day trading or swing trading, to get a faster (but smaller) gain. Additionally you can also sell if your stock falls, as a way to cut your losses and preserve your capital for future trades.
Trading shares is a shorter-term approach than buying and holding stocks. When trading shares, you can go with either a conventional online broker, or a CFD broker. Just note that leveraged CFD trades produce more volatile results, with both the potential gains or potential losses being much larger.
Our top tips for investing in Vodafone stock
If you’re going to invest in Vodafone stock, here are some tips to help you succeed:
- Know your budget. Your budget can be large or small, just as long as you stay disciplined and don’t venture more than you can afford to lose. We discuss a good strategy to limit losses a little further below.
- Choose a strategy that works for you. You want to pick an investment strategy that fits your specific investment goals, and ensure you don’t take on more risk than you can handle. Also be aware that you shouldn’t try overly complex investment strategies until you’ve gained more experience as an investor.
- Stick to an investing plan and don’t react to emotions. Having a sound investment plan before you make your first trade will help you make level-headed investment decisions. That’s the best way to defend against emotions such as fear and greed, which can cause investors to act foolishly when the market starts to look uncertain.
- When market conditions change, change course. If a bear market begins, selling your stocks is strongly advised. When a bear market ends and a new bull run begins, that’s your signal to buy. You want to move with the market, always keeping a cool head and analysing the best move given the current situation.
- Learn from your mistakes. Mistakes can actually be a positive outcome for investors, as long as you learn from them and become better in the future. This can be a reason why it is good to start with a low budget, as if you make a mistake with a small amount, it could save you making that mistake when more is on the line later. Review your trades to figure out what went wrong, then apply those lessons for future trades.
What should I consider before buying, selling, or trading Vodafone stock?
This is our checklist of all the factors it’s important to bear in mind when investing in Vodafone stock.
- Budget size. If you have a smaller budget (£1,000), a buy-and-hold strategy with an online broker saves you money on transaction costs, which can become a problem if making frequent trades with a lower amount. If you have a bigger budget (for example, £10,000 or more), you can expand into day trading with a conventional broker, trading with a CFD broker, and other strategies.
- Risk management. Using stop-loss orders will help you protect your capital, so you hold onto money for future trades. Let’s say that you buy shares of Vodafone at £110 per share. In that case, you can put in a stop-loss order at £99, instructing your broker to sell your stocks if their value falls to that amount. This happens automatically, so you won’t lose more than 10% on your trade if and when the stop-loss triggers.
- Market conditions. When a bear market starts, cash or bonds are typically safer ways to deploy your capital than buying growth stocks. Wait for a bull market before buying Vodafone shares. Decide what you want to be buying by analysing the condition of the market.
- Know your investing goals. If you know where you want to get to, you’re much more likely to make it there. Day trading and swing trading are faster-moving approaches, which can deliver gains sometimes in a matter of hours or even minutes. Buying and holding shares can work out great, if you pick the right stock and hold for a longer period of time. It all depends on if you’re looking for long-term growth or quick wins.
- Follow emerging trends. The fourth-largest mobile phone service provider in the world, Vodafone nonetheless faces stiff competition for market share across the world. Vodafone’s ability to lead with new technological innovations will play a key role in where the company goes from here. Keep up-to-date with telecommunications news from around the world to determine how you think Vodafone’s stock will perform over time.
What is Vodafone?
Vodafone is one of the world’s largest mobile phone network providers, and also offers other products such as wifi services. Based in London, Vodafone counts 444 million mobile phone service subscribers around the world. In its most recent reported fiscal year, Vodafone reported revenue of €43.7 billion, but with an operating loss of more than €950 million. For more information on Vodafone, including stock charts, live prices, and in-depth analysis, visi the Vodafone stock price page right here on this website.
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