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How to buy DocuSign shares (DOCU)
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82% of retail CFD accounts lose money.
Use this guide to learn everything you need to know about DocuSign. Read on to get an overview of the company and its history, some things to look out for, and find the best brokers to use.
Compare the best DocuSign trading platformsCopy link to section
To get DocuSign shares straight away, use one of the brokers below. We’ve reviewed all the best platforms to help you find one that suits your investing style. If you aren’t ready to do that just yet, keep reading to learn more.
77% of retail CFD accounts lose money.
How to buy DocuSign stock, a step-by-step guideCopy link to section
The stock market is quite simple and straightforward once you know what you’re doing. Follow these steps below to get started and find out how to get your hands on your first share.
- Choose a broker. The first thing you need to find is an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in DocuSign shares.
- Place an order for DOCU stock. Search for DocuSign’s ticker symbol (DOCU) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your DocuSign shares will be listed in your account. Congratulations, you’ve just bought shares in DocuSign.
What is DocuSign? And should I invest?Copy link to section
DocuSign is a software-as-a-service (SAAS) company that lets you sign documents electronically. Since its foundation in 2003 it claims to have saved billions of sheets of paper and hundreds of thousands of barrels of oil by offering businesses a way to complete deals digitally.
It’s been popular with investors ever since its 2018 IPO. Its e-signature service is perfect for a world where more work is done online and the only close competitor is Adobe, whose PDF reader offers a similar encryption service. That’s a sparse field for a market that could be worth up to $25bn.
You might want to invest to grab a slice of that pie in the years to come. The only thing to be wary of is that its price is well ahead of its financials at the moment. DocuSign a tech startup that prioritises market share over making money, so it burns through a lot of cash: it’s not predicted to break even until 2024.
How has the company performed in recent years?Copy link to section
It had been doing well before the pandemic and that growth only accelerated in 2020. Its shares popped 30% on the very first day of trading back in 2018 and then its value tripled as the coronavirus forced everyone to start working remotely.
The pandemic merely catapulted many businesses into a digital future a few years ahead of time. DocuSign already had more than 100,000 companies paying for its full enterprise package beforehand along with hundreds of millions of individual users.
One feature of the share price even during a run of success is its volatility. It’s not uncommon to see double digit rises or falls in the space of a few days. This is another feature of tech stocks in particular but is something to be aware of if you do invest, as the volatility isn’t necessarily a reflection of its performance.
Is it a good time to buy DocuSign shares now?Copy link to section
If you expect businesses to continue operating online. While the boost from the pandemic might be a one off, DocuSign is well placed to keep its new customers where other companies might lose them as the world returns to normality.
It has a powerful AI engine that can assess risk in contracts, particularly useful for enterprise customers, and has built in integrations with the likes of Slack and Salesforce. Virtually all of its revenue comes from subscription fees, so adding more features to encourage customers to stay is vital to the business.
Ultimately, if you invest you want to see DocuSign achieving profitability as soon as possible. More subscribers is key to that. Keep on the lookout for new partnerships and features that might attract enterprise users. Our market analysis can help you:
Buying, selling and trading DocuSign shares for beginnersCopy link to section
What to do before buying sharesCopy link to section
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in DocuSign shares.
- Research the company. You should always examine the fundamentals of a company first. What is DocuSign? How did the company get its start? How did it grow? Does DocuSign’s balance sheet look good? Is the company innovating? The more you know about DocuSign, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the news to track movements in the financial markets.
What is the difference between buying, selling, and trading shares?Copy link to section
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade DocuSign shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for DocuSign stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any DocuSign shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that DocuSign’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade DocuSign shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD tradingCopy link to section
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealingCopy link to section
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
CFD TradingCopy link to section
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to flip stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into DOCU shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.
How to choose a brokerCopy link to section
A broker is the best way to buy shares in DocuSign. With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to fund your broker account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest DocuSign newsCopy link to section
DocuSign shares jump on a swing to profit in Q2
DocuSign CEO on Q1 earnings: ‘we are well-positioned for future’
DocuSign to lay off employees again: a reason to buy stock?
DocuSign stock jumped 15% in after-hours: here’s the catalyst
Docusign stock still has another 20% downside: Piper Sandler
DocuSign tanks 25% on Q1 results: ‘they’ll be impaired in long term’
Stock trading coursesCopy link to section
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Short-term Stock Trading
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >