Jump straight to Webull! Get real-time market data, analysis tools and $0 commissions.
With the start of 2021, Wall Street has been hit by a new phenomenon, the meteoric rise in popularity of the Reddit group WallStreetBets. As this collective group of retail traders continue to target highly shorted GameStop (NYSE: GME) and the hedge funds short the stock, other stocks have begun to rally alongside it. One such stock is Nokia (NYSE: NOK), which has skyrocketed in January, rising from $3.85 on January 1 to a high of $9.79 on January 27.
Are you thinking about investing in NOK? Our guide for beginners will help you begin. Open a brokerage account and place your first order today.
How to Buy (NOK) Stock
Is this your first time investing? Here’s how to get started buying NOK stock.
Pick a Brokerage
Whether you are buying Nokia as a long-term investment or want to day trade, you must first begin by opening a brokerage account. A broker is a financial services firm that acts as the connector between an investor and the securities exchange, ultimately buying and selling stocks on your behalf. Numerous brokers offer both free and commission-based trading platforms. Every brokerage firm listed in the United States will allow you to buy and sell NOK, as it’s listed on the New York Stock Exchange.
Some of the factors to consider when choosing a broker include:
- Fee structure of the brokerage firm
- Research tools offered
- Experience level of the average user
- Other markets offered outside of the NYSE
- Different order types supported
Unsure of where to begin your search? Browse some of the best brokers for beginners below.
Decide How Many Shares You Want
Once you open and fund your brokerage account, you next need to decide how many shares of NOK you want to purchase. Start by looking at the current price of NOK and evaluate how much money you are willing to risk. Assume that if you invest today that your order will be filled near the current market price. Keep in mind that your investment can decrease in value at any time, so take a look at the historical chart of NOK to better define when you want to sell.
Choose Your Order Type
The type of order you select will indicate the price you are willing to pay, the timeframe for execution and more. Choosing the appropriate order type gives you greater control over its execution and over your investment. Check out more common terms you may come across when placing an order.
The bid price is the highest price that a buyer is willing to pay for a share of the stock. Knowing this can prevent you from overpaying for a stock.
The ask price is the lowest price that a seller is willing to take for a share of the stock. Avoid accepting too low of a price when selling your shares.
The spread is the difference between the lowest ask price and the highest bid price. Low-priced stocks and those with lower trading volumes tend to have a wider spread, while blue chip stocks like Apple tend to have a lower spread.
A limit order is an order to buy or sell a stock at a predefined price or better. For example, you might set a limit order that tells your broker that you want to buy NOK stock at a maximum price of $5 a share. If the price of NOK falls below $5, your broker will execute the order. If the price of NOK rises above $5 a share, your broker will halt the order until prices drop again. This gives you more control over the price you pay per share and the risk you are taking on the trade.
A market order is an order to buy or sell shares at the current market price. This order will execute at whatever the prevailing price is, regardless of how much the stock moves up or down. Market orders give you less control over the specific price you pay, but allow you to buy or sell much faster than a limit order.
A stop-loss order is a type of sell order that triggers once a stock falls to a certain price. For example, let’s say you bought 10 shares of NOK stock at an average price of $5 a share. You might set a stop-loss order at $4.48. This means that if the price of NOK falls to $4.48, your broker will automatically sell your shares. Stop-loss orders help you manage your risk by selling off your investments when they reach a low-end price point.
A stop-limit order is a type of order that combines a stop-loss order and a limit order. When you place a stop-limit order, you have to set an upper limit and lower limit price. For example, if you’re buying NOK, you might set a limit price of $5.10 and a stop price of $4.90.
If the price of NOK rises above $4.90, your stop-limit order will convert to a limit order. From here, your broker will fill the order as long as NOK stock can be purchased for $5.10 a share or less. If the price rises above $5.10, your broker will stop filling the order. This gives you as the investor far more control over the price that your order is filled at.
Execute Your Trade
After you’ve completed your order form and submitted it to your brokerage, you’re done! The amount of time it takes to fill your order will depend on the type of order you placed, the current market conditions and the average price of NOK. Most brokers allow you to be notified by push notification and/or email once your order has been filled. Depending on your broker and the type of order placed, you may have to place the order again the next day if it’s not filled during market hours.
Nokia Stock History
Headquartered in the greater Helsinki, Finland area, Nokia is largely a hardware, software and telecommunications company. Originally founded in 1865, Nokia now employs over 100,000 people across over 100 countries. Nokia’s stock price peaked at over $59 dollars in 2000 during the dot-com bubble.
Outside of 2000, Nokia’s most successful year financially was in 2007 when Nokia was the highest-selling mobile phone company in the world, commanding over 40% of the market share. The stock price of NOK had a second peak at around $40 in October of 2007. Nokia has continued cutting costs as it prepares for the continuing transition to 5G technology.
Pros to Buying Nokia Stock
As the world continues to transition to 5G technology, companies like Nokia are positioned well to take advantage of this change. Furthermore, with other well-established companies moving recently in tandem with the wallstreetbets GME pump, Nokia will be looking to capitalize on this momentum. While Nokia’s recent volatility may not be sustainable, NOK could also prove its mettle as an interesting long-term investment for those looking to put money into the rapidly expanding 5G space.
Cons to Buying Nokia Stock
If you do plan on investing in NOK, understand that you may be taking a risk on a stock that has shown significant recent growth. The current increase in price of NOK continues to gain more media attention, in large part thanks to celebrities like Mia Khalifa and Dave Portnoy tweeting about the stock. Nokia’s over 100% intraday move on January 27 was unprecedented for the company, making it the second-most traded stock on the NYSE at 1.14 billion shares. While there may be room for further growth, NOK could crash down in value rapidly and with little notice.
Consider Adding Nokia to Your Portfolio
Whether you’re investing in NOK, shorting it, or searching for stocks under $10 to add to your long-term portfolio, it’s crucial to do your own due diligence before you invest. Although you risk more investing in NOK compared to investing in diversified funds, any type of investment can decrease in value. Never invest more money than you can afford to lose, and diversify your positions to limit losses in the event that the market goes against you.
Turn to Webull
0 Commissions and no deposit minimums. Everyone gets smart tools for smart investing. Webull supports full extended hours trading, which includes full pre-market (4:00 AM - 9:30 AM ET) and after hours (4:00 PM - 8:00 PM ET) sessions. Webull Financial LLC is registered with and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is also a member of the SIPC, which protects (up to $500,000, which includes a $250,000 limit for cash) against the loss of cash and securities held by a customer at a financially-troubled SIPC-member brokerage firm.