If you’re looking to get involved with investing in the stock market, then buying, selling, and trading shares of Ford could be for you. The stock has fallen on hard times recently, but such a large and well-known company is a good place to consider for investing your money. If you do your research and learn key investing principles, then you’ll be ready to invest in Ford shares. We’ve produced this page and other educational stock trading articles to help you make wise investment decisions on Ford and other stocks.
If you’re ready to invest, click the links below. Need more time to get to grips with everything? Then keep reading.
Compare the best platforms to invest in Ford shares
The links below offer helpful investment advice to ensure you make wise choices with your money. Our investment guides detail the best investment methods and show you how to make money buying Ford shares. Once you’re done reading, you’ll be well prepared to buy and trade Ford stock.
Trade Ford shares, right now
Trading shares implies a shorter-term investment approach than buying shares. When trading shares of Ford, you’re trying to make money but buying and selling Ford shares more frequently and profiting from market fluctuations. We’ve reviewed the best low-fee online brokers that can help you make money from higher-frequency, short-term trading so you can trade Ford stocks with confidence.
How to buy Ford shares in 7 simple steps
Before you invest your capital, you want to get to know how Ford operates as a company, as well as the track record of Ford’s stock. You’ll also want to scrutinise the state of the stock market to see how it’s performing. Follow these steps first and you’ll be better prepared to start investing in Ford stock & shares.
Here’s a checklist to go over before you buy Ford shares.
- Get to know the company. How did Ford grow to become one of the largest automobile manufacturers in the world, only to decline in recent years? Will the company bounce back? The better you understand how Ford does business, the better your chances of success when you buy Ford stock.
- Learn the basics. Learning the key tenets of fundamental and technical analysis will make you a more informed and more formidable investor. Our educational courses on investing and trading are a great place to start.
- Decide if you want to be share-dealing or trading. Share-dealing is when you buy Ford shares, typically with a plan to hold onto those shares for a while. To make money through share-dealing, you want to invest your money in stocks that increase in value over time. You can also make money from dividends when share-dealing, assuming you buy shares in a company that issues dividends. Trading shares is a shorter-term approach, and can include day trading and swing trading. When trading Ford stock, you’ll need to know how to read its stock chart (technical analysis), which is far more important in this case than fundamental analysis as you’re looking to profit from movements in the market rather than the long-term value of the stock.
- Set a budget. When you start investing, you should start with a smaller budget, something like $1,000. After years stuck in a downtrend, Ford now trades around $4 per share, so you can comfortably buy around 250 shares with that starting amount. As you gain more experience and build your bankroll, a budget of say $10,000 can enable you to make higher-frequency trades via day trading or swing trading – but starting small allows you to learn the ropes without risking too much of your hard earned money.
- Choose a stock broker. There are lots of stock brokers that can help you buy Ford shares. You want to find a broker that offers an easy-to-use platform, a strong reputation, and low transaction costs. We’ve reviewed all the platforms available so you can make the right choice.
- Evaluate the condition of the stock market. Ideally you want to invest your money before stock prices rise, generating profits for you in the process. When the stock market rises 20% or more over a period of time, it’s known as a bull market and generally the prices of stocks are expected to rise. When the market falls 20% or more over a period of time it’s known as a bear market; this causes a lack of confidence in stock values which generally leads to prices dropping further. Follow the broad market trend, rather than trying to fight against it.
- Make your first investment. You’ve done your investment research, set a budget, found an online broker, and confirmed that the market is looking good. Now simply log into your online brokerage account, type in Ford’s ticker symbol (F), check that the stock’s price works for your strategy (in this case to buy low), then click buy. You’ve just successfully bought Ford stock.
Ways to invest in Ford
There are many methods you can use to buy, sell, and trade shares of Ford online. The two most common are share-dealing and CFD trading, so we’ve quickly summarised those methods here.
When share-dealing, you’re buying Ford shares and holding them for an extended period of time, in pursuit of building large profits over time. It’s a longer-term investing method than trading shares, which is geared toward making a quicker profit.
- Pros: When share-dealing you get the freedom to focus more on fundamentals, without necessarily needing to be fluent in stock chart analysis. If Ford shares start rising, holding for longer could lead to big gains.
- Cons: Your money’s tied up for longer when you buy and hold, so you have less left over to pursue other investment opportunities. Also, you’re exposed to falls in value of the stick: if Ford’s stock starts falling after you buy, you’ll need to decide if you want to cut your losses or sit through a potential market correction.
A CFD (contract for difference) is an investment tool that lets traders speculate on the price movement of investment assets, in this case shares of Ford. When CFD trading, you don’t actually own the asset, instead you take a position on whether you think its value will rise or fall, and can wait until the optimal time to close your position to make quick profits.
- Pros: CFD trading enables you to trade with significant leverage, so you can put down just a small percentage of the total trade value if you like. When trading with leverage, the size of your potential gains goes up significantly if you correctly guess the direction of the investment asset you’re betting on.
- Cons: On the other hand, CFD trading leads to much bigger losses when a stock falls. For this reason it is only recommended to trade with leverage if you have significant trading experience. Additionally, if you leave a leveraged CFD position open more than a day then you’ll pay overnight fees. Finally, when engaging in CFD trading, you lose all stock voting rights, plus the dividends that come with owning shares of certain companies.
It is a good idea to get to know as many different trading and investing methods as possible so you’ll have more choices at your disposal. Read our online guides, news articles, and educational courses to improve your investing knowledge. If you’re ready to buy Ford stock now, just click the links above.
How to buy, sell, and trade Ford shares for beginners
If you’re a beginner considering buying Ford stock, here are Invezz’s quick summaries of the methods you need to understand:
Buying Ford shares
Online brokerage firms provide trading platforms that allow you to buy Ford shares quickly and inexpensively. When buying shares, you typically have the goal of holding stock for a longer period of time in the expectation the market will rise. To buy Ford shares, log in to your online brokerage account, type Ford’s ticker symbol, then make your purchase.
When selling Ford shares, you make money when you sell at a higher price than your buy price; the bigger the gap between those two price points, the bigger your profit. You can make money by holding for as long as possible for the biggest possible profit, or by selling more quickly to preserve profits in the event of a market downturn. Selling shares is also a good way to cut your losses before they become overwhelming in case you’ve made a bad investment earlier on that you need to unload.
You can trade Ford shares with either a conventional online broker or a CFD broker. CFD-brokered trades carry both a benefit but also a significant risk if you try leveraged trading, which allows you to take positions worth large amounts of money but only having to stake a small % of the capital yourself.. Also, be aware of the extra fees that CFD brokers often charge, usually in the form of overnight fees.
Our top tips for investing in shares in Ford stock
To help guide you through the process, here are Invezz’s 5 top tips to bear in mind when investing in Ford shares:
- Know your budget. Don’t invest more than you can afford to lose, especially when you’re just starting out as an investor.
- Choose a strategy that works for you. Find an investment strategy that fits your goals. That means not taking more risk than you can financially or emotionally handle, and also not trying specific investing approaches if you don’t yet know how to properly execute them.
- Stick to an investing plan and don’t react to emotions. Following a sound investing plan will help you overcome the fear and greed that can rattle investors during market extremes. Emotions often cloud investors’ judgment, which can cause them to make unwise investment decisions. Having a solid plan to stick to will help you avoid getting caught up.
- When market conditions change, your approach should too. When the stock market starts falling, be ready to get out before things get ugly. You can always jump back in when the stock market starts a new uptrend. This is not to be done out of panic (see point 3), but by taking a rational look at the market and realising it’s better to get out now than to hold your stocks while their value decreases.
- Learn from your mistakes. Review your trades, figure out what went wrong, and make a plan that will enable you to do better next time. Everyone, even the most experienced investors, makes mistakes – what’s important is taking the knowledge from them and not repeating them in the future.
What should I consider before buying, selling, or trading Ford stock?
Here are some other investment variables to consider:
- Budget size. The larger your budget (say, $10,000 or more), the more creative you can get when trading, with day trading and CFD trading becoming more viable options. If you have a smaller budget (around $1,000), a buy-and-hold approach makes sense, since you avoid frequent transactions and the escalating fees that add up that way.
- Risk assessment. Avoid risky investment strategies when you’re just starting out. One thing to consider is to use stop-loss orders to protect your investment. Here’s how that works: Let’s say you buy Ford shares at a discounted price of $4 per share. You can then put in a stop-loss order at $3.60, meaning if the share price falls to that level, your stock will automatically be sold. That way if Ford’s stock falls (adding to its losses from the past few years), you can’t lose more than 10% of the money you put in.
- Market conditions. When a bear market begins, defensive investment strategies such as bonds, commodities, and cash usually make more sense than buying stocks that are falling in value. If the market’s flourishing, your odds of Ford’s stock going up improve and it’s generally a good time to buy.
- Know your investing goals. Day trading could work for you if you’ve learned how to read stock charts and want to make money quickly. If you have the patience to wait for bigger gains, or have longer term ambitions such as building a portfolio for retirement, you can buy and hold shares.
- Follow emerging trends. Keeping up to speed with the news will give you an insight into how the value of certain stocks may change in the future. Consumers are switching to electric and hybrid cars more and more with each passing year, and Ford will need to grab a significant piece of that pie to revive its fortunes.
What is Ford?
Ford is one of the most famous car manufacturers in the world. Founded in 1903 by Henry Ford, the business pioneered the concept of assembly-line manufacturing, dominating the early days of passenger cars. In more recent years, Ford has been eclipsed by more nimble competitors, and will need to innovate to regain market share. If it can do so, Ford’s stock could conceivably bounce back from its recent woes. For more information on the company, including charts, live prices, and analysis, visit Invezz’s stock price page for Ford.
Try some of our stock market courses for beginners
To learn more before investing, check out our easy-to-follow educational courses. That way you’ll be better prepared to buy shares of companies like Ford. The more you know, the better an investment strategy you will be able to craft.