Shell Stock Trading

Shell PLC is one of the largest oil and gas companies in the world and a popular stock among retail traders and investors. This guide to Shell stock trading will provide everything you need to invest in the petrochemical giant’s shares, from trading hours and price charts to dividend returns and company release dates. Our experts also explain how to buy and sell shares online and rank the best Shell brokers in 2024.

Company Background

Shell PLC (trading symbol: SHEL), also known as Royal Dutch Shell, is one of the biggest oil and gas companies on the planet. It was formed in 1907 after a merger between Royal Dutch Petroleum Company and the “Shell” Transport and Trading Company Ltd. The company has its headquarters in The Hague, Netherlands, and is registered in England and Wales.

Shell is a major player in the energy market, operating in over 70 countries and employing over 90,000 people globally. Known for its refinement and production of crude oil and petroleum products, the corporation has consistently been one of the largest companies by revenue, with reported annual sales of over $200 billion.

As a publicly traded company, it is also a popular choice among investors as it is seen as a stable and safe investment. This is backed by dividend statistics from the past decade, as it has consistently paid a quarterly dividend.

Now, Shell is forecast to enter the sustainable energy sector, investing in renewable energy and other low-carbon technologies. This is a response to the shift in trend towards cleaner energies due to the environmental impact of burning fossil fuels.

As well as being listed on the London Stock Exchange (LSE), Shell stock trading is available on the New York Stock Exchange (NYSE) and Euronext Amsterdam (ENX).

Price Chart

Share Price Influences

Many factors can impact the price of Shell PLC shares. Being aware of these will allow you to anticipate fluctuations in price, which is key to ensuring the trades you make in Shell stocks remain profitable.

Below are the key short-term influences on Shell’s share price. These cause volatility in the market and are particularly useful if you are using a short-term Shell stock trading strategy.

• Earnings reports: The release of earnings reports can have a significant impact on the stock price of Shell in the immediate term. If the company reports better-than-expected earnings, the stock price may go up, while if the company misses earnings expectations, the stock price may go down.
• Commodity prices: Changes in commodity prices, such as oil and natural gas prices, can impact the stock price of Shell, as they directly impact the company’s revenue and profitability.
• Company news: News events such as mergers and acquisitions, changes in company management, or legal issues can have a short-term impact on the stock price of Shell.
• Analyst ratings: Changes in analyst ratings, such as upgrades or downgrades, can also impact the Shell stock trading price in the near term.

Many traders and investors use strategies that focus on predicting long-term trends in the market. Below are several key factors that can impact the price of Shell PLC in the long term:

• Market conditions: Economic conditions, changes in interest rates, and global events can all have a long-term impact on Shell’s share price.
• Company performance: The company’s financial performance included in annual reports, such as revenue growth, profitability, and cash flow, can also impact the Shell stock trading price in the long term.
• Industry trends: Trends in the energy industry, such as shifts towards renewable energy sources, impact the stock price of Shell in the long term.
• Technological advancements: Technological advancements in the energy industry, such as the development of new energy sources or energy-saving technologies, will influence the share price of Shell.
• Political events or natural disasters: Significant political events or natural disasters in relevant countries can disrupt the company’s operation, increasing the cost of production and decreasing the share price.

Highs & Lows

Shell has recorded some of its highest ever profits in recent years. In fact, its takings amidst the Russia-Ukraine conflict are among the highest ever recorded by FTSE 100 companies.

2022 saw the energy powerhouse bring in £32 billion in profit, following a surge in energy prices. The company doubled its earnings on the previous year while beatings its previous record of £26.75 billion in 2008.

Unsurprisingly, this helped push the company’s share price back towards its historical highs and away from its recent lows of 2020 amidst the uncertainty of Covid-19.

Shell Price Chart

How To Trade Shell Stock

Choose An Instrument

You can start trading Shell stock through several vehicles:

• Direct Stock Purchase: One way to trade shares in Shell is to purchase the stock directly through a brokerage firm. This means that you own the actual shares of the company and will benefit from any dividends. You can sell the shares when you deem them profitable.
• Contracts for Difference (CFDs): Another option is to trade CFDs (Contracts for Difference), which are financial instruments that allow you to speculate on the price movement of Shell stock without actually owning the underlying shares. They are popular among retail traders as they have a low capital requirement and can be traded with leverage.
• Exchange Traded Funds (ETFs): ETFs are investment funds that hold a portfolio of stocks, usually grouped by a theme such as sector, country, region or exchange. Shell is included in many ETFs that track the energy sector or the broader British or Dutch stock markets.
• Options: Options are financial derivatives that give you the right, but not the obligation, to buy or sell shares of Shell at a specified price and date. Trading options allow you to benefit from price movements in the stock but also carry a higher premium.
• Binary Options: Some amateur traders favour binary options as they are straightforward derivatives in which the trader only needs to predict which direction the price will move and the potential profit or loss are determined before the contract begins.

Choose A Broker

The next step is to choose reputable Shell brokers that offer low fees. AvaTrade, for example, offers Shell shares with a typical spread of 0.13% while traders can go long or short with CFDs and leverage up to 1:5.

Also look for a stable trading platform and app, such as MetaTrader 4 or MetaTrader 5. In addition, the best Shell brokers hold a license with a trusted financial regulator, such as the FCA in the UK.

Finally, check whether the firm offers reliable customer support, especially for beginners, plus tools like copy trading.

Open An Account

Once you have chosen from the top Shell brokers, you will need to open a live trading account. You will usually need to provide some personal and financial information, and most Shell brokers require proof of identity and address for KYC verification.

Also take note of any minimum deposit requirements. XM, for instance, offers Shell stock trading once clients have made a minimum deposit of £5 using payment methods such as wire transfer, bank cards, or popular e-wallets.

Place A Trade

Open your trading platform or broker’s website, then select Shell stock and the type of trade you want to make (buy or sell). You will also need to specify the size of your trade and set any stop-loss and take-profit orders.

After you have placed your trade, monitor its performance. You can use tools such as charts and technical indicators to decide the most profitable time to close your position.

Some Shell brokers and trading platforms are also available to download on mobile devices, so you can monitor your open positions on the go.

Tips For Trading Shell

Consider the tips below when trading Shell stock:

• Keep a trading journal: Keeping a record of your trades and the reasons behind them can help you identify any strengths and weaknesses in your Shell stock trading strategy. Traders can use apps like Edgewonk and TraderSync to automatically track and analyse their trading history.
• Monitor the news: Keep an eye on the latest news and events that can impact Shell’s stock price such as annual reports, changes in energy prices, and any news related to Shell itself.
• Use technical analysis: Study market data such as price and volume to identify patterns. You can use tools such as charts and indicators to help you understand the stock’s price trends and predict when a trend or pattern will emerge.
• Start small: If you are new to trading Shell stock, it’s a good idea to start small and only invest a small amount. You can also use fractional shares, which allow you to invest in high-value stocks with limited capital. Alternatively, consider demo accounts, which are offered by many top Shell brokers.
• Manage your risk: No matter what Shell stock trading strategy you use, it’s important to have a well-defined risk management plan in place. This can include setting stop-loss orders and limiting the size of your trades to a level that you are comfortable with.

Trading Hours

Shell trades on three stock exchanges with different trading hours:

• London Stock Exchange (LSE) – 8:00am–4:30pm GMT
• New York Stock Exchange (NYSE) – 9:30am–4:30pm EST (GMT–5)
• Euronext Amsterdam (ENX) – 9.30am–5:30pm CET (GMT+1)

LSE does not offer out-of-hours trading, so if you’re working a 9 to 5 or these opening hours do not work for you, you can choose a broker that allows you to trade on other stock exchanges such as the New York Stock Exchange.

NYSE also offers after-hours trading from 21:00 to 01:00 GMT for a higher rate. The higher rate is due to the different market conditions when there are fewer traders in the market.

Bottom Line On Trading Shell Stock

Shell PLC is a relatively stable investment for those interested in stock trading. They company has a strong reputation for maintaining stable dividend payments to shareholders, even in the toughest climates, such as during the Covid-19 pandemic. Although it may seem counter-intuitive to invest in an oil and gas company in a ‘climate emergency’ when many are shifting to cleaner energy sources, Shell could maintain a strong position in energy markets with its plans to venture into the clean and sustainable energy market.

Open an account with one of the best Shell brokers to start trading online.

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