The SpaceX was founded in 2002 to reduce space transportation costs and eventually colonize Mars. While Elon Musk's ultimate dream hasn't yet become a reality, SpaceX is one of the world's most valuable start-ups, valued at over $180 billion as of mid-2024 (according to CNBC).
The company manufactures spacecraft, provides launch services, and operates Starlink, a commercial satellite-based internet service.
As SpaceX's revenues and profits soar, many retail investors wonder when they can invest in the company. However, SpaceX is not publicly traded on major stock exchanges.
For those looking to invest in SpaceX, consider investing in top space stocks to gain exposure to the markets SpaceX targets. Examples include Rocket Lab USA (NASDAQ: RKLB), Virgin Galactic Holdings (NYSE: SPCE), and Lockheed Martin Corporation (NYSE: LMT).
Another option is to invest in an exchange-traded fund (ETF) focused on the space sector. As of mid-2024, some space-focused ETFs include Procure Space ETF (NASDAQ: UFO) and SPDR Kensho Final Frontiers ETF (NYSEARCA: ROKT).
Step-by-Step Guide to Investing in Space-Related Stocks:
After identifying a suitable alternative to SpaceX for investment, you can begin placing trades by following these simple steps:
Step 1: Open A Brokerage Account
To start investing, you will need a brokerage account. Please note, that they differ in the broker's commission, the number of markets available for investing, the complexity of the platform, and the ease of opening an account.
To make the right choice, you should compare the fees, conditions, and how easily you understand the platform and the brokerage company's concept.
In the beginning, you can try our pick for the online broker, which we made after various tests this year.
Using eToro as an example, we will show how you can open such an account:
- Register your account here. Registration is free, after it, it is not necessary to start investing immediately. You can first use this account to practice with a virtual portfolio eToro demo account.
- Provide your personal details, such as your name, email address, and a password for your account.
- Verify your email address by clicking on the link sent to you in an email from eToro.
- Enter additional information, including your date of birth, address, and phone number.
- Upload a copy of your government-issued ID (such as a passport or driver's license) and a proof of address (such as a utility bill or bank statement) to verify your identity.
- Fund your account using a variety of payment methods, such as credit/debit cards, bank transfer, or e-wallets.
Step 2: Make Your Research & Determine How Much You Want to Invest
After deciding where to buy stocks, the next step is researching the company to ensure it fits your financial goals and strategy.
Consider the company's history, performance, risks, competition, and growth strategy by reviewing its annual and quarterly reports, balance sheets, and income statements, along with third-party evaluations.
Key financial metrics to examine include revenue, net income, earnings per share (EPS), debt-to-equity ratio, return on equity (ROE), and the price-to-earnings (P/E) ratio. Additionally, consider analysts' opinions and stay updated with the latest news.
Next, determine how much to invest and your risk tolerance, ensuring you have an emergency fund and a budget for your investing strategy. Assess your financial possibilities by considering your time horizon, risk tolerance, and specific investment goals.
Step 3: Place Your Trade
Once you've decided how much to invest in your chosen company's shares, you can place your order:
Market Order: Buys or sells stocks at the current market price, typically executed quickly.
Limit Order: Buys or sells stocks at a specified price or better, providing more price control but may not execute if the price isn't reached.
Choose the order type based on your investment strategy, risk tolerance, and goals. Consider market conditions and stock volatility before placing your order.
Step 4: Monitor Your Investment Regularly
Regular monitoring allows you to stay informed about performance and make necessary adjustments, while a stop-loss order helps limit losses by automatically selling a stock if it falls below a certain price.
Avoid overreacting to short-term market fluctuations, as the stock market can be volatile with short-term dips before rebounding.
Regularly review your investment strategy to ensure it aligns with your goals and risk tolerance, adjusting as needed to meet your needs. Understanding potential risks is crucial for informed decision-making.
Market risk involves general market movements affecting investment values, credit risk pertains to the issuer's ability to make payments, liquidity risk relates to the ease of buying or selling investments, and diversification risk involves balancing the spread of investments. Emotional and behavioral risks can lead to impulsive decisions, and company-specific risk is the potential for individual companies to face challenges affecting stock value.
Diversify within your portfolio to mitigate these risks effectively.
Learn More:
The Basics of Risk Management for Traders and Investors>>
