Buy Nvidia shares
Today's world is unimaginable without networking technology. We buy things online, we do research online, we search for all the information we need, and we make friends and simply communicate through the World Wide Web.
Progress has not spared the investment system either. While earlier only a small group of influential investors, who used multimillion sums of money, were interested in how and where to spend the money, today the average citizen is also interested in investing. The investment strategy has changed, as have the tools and methods of investing. You don't have to go to a bank branch, the office of the company whose shares you are going to buy, or the stock exchange. All transactions are available to you online, wherever you are at the moment.
When it comes to the purpose of investing, people still favour large companies, the so-called market giants, whether in manufacturing, innovation and development or services.
One such giant is the American company NVIDIA Corporation.
In this brief overview, we'll look at investing in Nvidia stock.
Nvidia Corporation is an American manufacturer of graphics processors, video adapters under the Riva TNT and GeForce brands, multimedia and communications devices for PCs and game consoles such as the Sony PlayStation 3 and Xbox. The corporation is headquartered in Santa Clara, Calif.
The company was founded in 1993. NVIDIA Corporation was founded by its three founders, Jen-Hsun Huang, Curtis Priem, and Chris Malachowski.
NVIDIA serves the entertainment and consumer market with its GeForce GPU products, the professional design and visualisation market with its Quadro products, the high-performance computing market with its Tesla computing solutions, the mobile computing market with its Tegra processors the foundation for a new generation of tablets, Slate, smartbooks, e-books and the small form factor Ion graphics processors.
The company takes its name from the Latin 'Invidia', which means 'sense of envy'. Symbolically this is underlined by the company's logo itself, in addition, the name is consonant with 'video', reflecting the company's core business. Some graphics cards are also named with references to ancient mythology. For example, the slogan for the GeForce 8 series, 'Green with envy', translates to 'Green with envy', and top-of-the-line graphics cards are called Titan.
A wide range of electronic products and good financial performance attracted many investors to the securities of this issuer.
Its initial public offering on NASDAQ was made in early 1999. To date, the issuer's securities on this site can be found under the ticker NVDA.
In addition, the shares can be traded at Frankfurt, Hamburg, Dusseldorf, Stuttgart, Berlin, Munich, London and other European exchanges. Securities are also traded on the OTC Tradegate Exchange.
Choosing an investment method
Depending on the goals you set for yourself, your investment methods will vary.
There are two ways to make money from NVIDIA shares either by share price appreciation or by taking dividends from them.
The dividend income method can easily be referred to as a passive income option, since you are investing in the future earnings of the company. Dividend strategy is a method whereby you buy shares with the expectation of interest income from them, rather than a return on the share price. Such strategies are the most conservative and far less risky than those that involve speculation on the value of shares on the stock market. The methodology for calculating dividends is set out in the Dividend Policy or in the company's Articles of Association.
You should also consider whether the company will be profitable in the future and what its prospects are, as a long-term investment is an investment in the future earnings of the company. Therefore, consider how likely it is that the product or service provided by the company in which you are investing will be in demand in a few years, whether the company has intentions to expand its activities in the future, what are the market trends in this area and so on. You should also keep in mind that a company may decide to suspend dividend payments for a while, putting all the money toward innovation and business development.
NVIDIA Corporation pays a quarterly dividend to its shareholders of 1.97% per annum.
An alternative method is CFD trading. It is suitable for those who do not have a large enough capital to start trading.
The Contract for Difference (CFD) is a popular type of derivative which allows you to trade on margin, giving you more options in the financial markets. A CFD is a type of derivative financial instrument where you do not buy the underlying asset. Instead, you buy or sell units of that financial instrument depending on whether you think that the underlying price is going to rise or fall. A CFD is a contract between a trader and a broker who agrees to exchange the difference in the value of the underlying security between the beginning and the end of the contract.
Trading derivatives allows you to make a profit on a stock even if the price of the stock falls, because it consists of your prediction of the value of the stock. If you forecast a fall in the price of a stock and the price does go down, you make a profit.
How to buy NVIDIA shares?
The first step is to choose a reliable broker. The internet is simply full of information about NVIDIA Corporation as an investment target as well as brokers who provide investment services and deal in the company's shares. Therefore, study the brokerage market and choose a reliable broker online. To do so, carefully study the broker's investment experience, professional reputation and reviews of the broker. Of course, a broker should obligatory have a brokerage license. Find out additionally what commissions the brokerage company charges for its services and what resources you can get by registering on their website.
The next step is to register yourself.
Registration on the Nvidia share trading platform
So, once you have chosen a reliable broker and decided on an investment method, you will need to register with an online investment platform. An online investment platform is the software provided by your chosen broker, through which you can carry out all your investment transactions. In most cases, registration is really simple; it consists of filling in a registration form on the official website of the brokerage company. The first step is simple basic information such as your username and e-mail address. Later on, when you need to withdraw funds from your account, you will need to go through a more detailed and more complex security check. Thanks to the system's tooltips in the form of pop-ups, you can easily cope with additional verification as well.
The purpose of a demo account
Once you have logged on to the platform, you will have access to a demo and a real account. Here it's as simple as that. A demo account is a test training account into which the system credits dummy funds for training. This account is free. Try out a demo account first, to see if you really understand how the platform works. A demo account is the exact replica of a real account, but you don't risk your money. It is a good opportunity to learn and should not be neglected.
Real account activation. Withdrawal of funds
In order to start real trading and be able to make real profit, you will need to activate a live account. The system has already created this account automatically, and to make it active, all you have to do is to fund it using any of the methods the system offers. Click on the "Top Up" button and choose the top up option. You can recharge your account either with a bank card or via any other convenient payment system. The minimum deposit amount is usually just a few dollars, so you may start trading even if you don't have much money.
You can withdraw funds via the same payment systems or withdraw them to your bank card.
Prerequisites for successful online trading
It should not be forgotten that investment transactions, while seemingly simple and accessible, still involve a lot of risk. Studying the market, the latest political and economic news, and analysing company performance should be a habit if you want to become a successful trader.
You should not forget that stock price fluctuations are influenced by many external factors, such as the political situation in a country, economic laws, the general state of the market in the country and the world economic situation. Therefore, do not ignore the news and keep up-to-date on the state of the company in which you are investing. Trust only trusted sources of information.
Pay attention to all tutorials on and off the platform. Learn to analyse how certain events, whether a man-made disaster or the passing of a new law, affect price fluctuations in the market. Constantly work on improving your strategy and rely on your experience rather than luck. By following experts' advice and steadily increasing your knowledge you will eventually develop a trading strategy of your own, which should yield good results sooner or later.
Open a Demo Account and learn today, it's completely free, and could be your first step into the great world of investing!