Tesla shares are traded on the NASDAQ stock exchange in the US, which means that Turkish investors can buy shares from brokerage houses that enable overseas transactions.
If you want to buy the stock of Tesla (NASDAQ: TSLA), an electrical automotive and energy company, it is worthwhile to be prepared for hard ups and downs.
In the last 6 months alone, Tesla’s share prices rose to $ 379.57 and fell to $ 250.56. If you look at Tesla’s stock prices, you will be able to see that the company has undergone similar changes for five years.
However, referring to past performance when investing may not be the right approach, especially in the long run. Past performance is not a guarantee of the future. This is a leading manufacturer of electric cars. Moreover, the company has a visionary CEO like Elon Musk.
In this case, you can keep your hopes of long-term growth alive. So, how to buy Tesla stock? Here are five steps to follow before you hit the “buy” button.
1.Find Out What You’ve Got and What You’ve Purchased
We are talking about whether the price may see sharp decreases, but perhaps one of these price decreases would be a great opportunity for us to buy Tesla shares.
You may be fascinated by Elon Musk’s vision and want to include a company in your portfolio or you may want to get your share of the growing electric car industry cake. Regardless of your goal, when you buy a stock, keep in mind that you are a partner in a small part of the company from which you purchased the stock.
On your journey to investing in Tesla shares, get started by learning what you’re buying and getting into. Remember, when you buy a stock, you buy not only a cult of personality or brand, but a small portion of a real company.
Review the company’s balance sheet and income statement, key elements such as management and competition in the sector. As long as you keep the company’s shares in your portfolio, check them regularly. Our guide to researching stocks can help you find everything you need to do this initial check.
Once you have enough information about what you’ve purchased and what you’re getting into, you can move on to another step.
2.Open a Stock Investment Account from an Intermediary
To purchase Tesla’s stocks, you need to have a stock investment account in a brokerage house. You can easily and quickly open an account from brokerage houses.
Tesla shares are traded on the NASDAQ stock exchange. This means that in order to purchase Tesla shares, you must open an investment account from a brokerage house that allows foreign stock transactions.
You can see the list of intermediary institutions that enable foreign stock transactions. Once you open a stock investment account from these intermediaries, you can start buying and selling stocks of other foreign companies, including Tesla.
When you open a stock investment account, identify what you need other than buying stocks. For example, see if brokerage firms offer features such as low transaction commissions, quality customer service, analysis and tutorial videos or guides.
You can now open your stock investment account by completing the necessary reviews and using your choice as the most appropriate tool to meet your needs.
3.Determine How Much to Invest
This step is about how much of your savings you want to invest and how much space you want Tesla shares in your portfolio. But of course, you should never forget the rule of never putting eggs in one basket.
To prevent your portfolio from being exposed to volatility and to reduce your risks, you should consider having a number of other assets, for example in different sectors or geographic areas. In this context, Tesla represents an American growth company in the automotive sector.
If you do not have a diversified portfolio yet, the easiest way to diversify your portfolio is to invest in mutual funds. Funds bring together company shares in the same or different sectors to reduce the possibility of losing all your investment. This reduces the likelihood of losing your entire investment, for example, in case Tesla sees the bottom.
After diversification, you can also include companies like Tesla in your portfolio by making a logical distribution.
4.Start Buying Stocks
To purchase Tesla stocks, you will be asked to choose between a market order or a limit order. It is important that you know these types of orders.
A market order makes your stock purchase immediately and allows you to buy shares at the best possible price during the transaction. However, in the case of a stock with high ups and downs, such as Tesla, the market order may bring some negativity as soon as your sales order is executed. For example, you may have to pay more for the shares. If you’re trading at a time when Musk tweeted in a different way, you can take advantage and pay less.
A limit order allows you to set the price you want to pay to the shares. You set a price and when the share is equal to that price, your purchase takes place. For example, if Tesla shares are traded at $ 305 and you want to pay $ 300, you place orders with a limit price. When the share price decreases to $ 300, your purchase will be executed.
After selecting the order type, you can finally buy Tesla shares.
5.Track Your Investment
When you buy Tesla or another company’s stock, do not assume that your business as a shareholder will end from that moment. It is up to you to follow up and review the company to determine if any point stock is a good investment. That’s why treat yourself as a smart shareholder and keep an eye on your company.
Whether you buy shares from Tesla or another company, the transactions you need to take are usually the same. For more information, see our detailed guide on how to buy stocks from foreign companies traded abroad.