How to Place Orders on the Stock Market
The process of placing orders on the stock market is a mystery to most people. The last decade has opened the trading process to the general public through speedy trading platforms and stock brokers geared toward small investors. The most important aspect of placing orders on the stock market is keeping an eye on your maximum investment amount with each trade.
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Instructions
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Keep your online-trading account information close to you every time you trade. You should log out each time you step away from your desk. Most trading platforms log out for you after a certain amount of idle time.
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Write down the stock symbol and current market price before you place an order on the stock market. There are thousands of stock symbols that can easily be transposed or otherwise mistaken during your trading experience. You should note the current market price to help you determine what kind of trade to make.
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Employ a simple buy or sell order when you find a stock you want in your portfolio. This type of order is called a market order, and it completes your transaction immediately at the current share price.
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Complete limit orders to buy stocks at a certain price or lower on the stock market. This type of order allows you to set a specific price and number of shares you want to buy or sell during the trading day. Most platforms allow you to set these trade limits several weeks in advance if you anticipate a gradual market change.
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Use a stop order to sell your shares before they fall too low in the market. Your online trading platform or stock broker can be instructed to sell certain shares at a predestined low point, helping you avoid losses on the stock market.
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Review each order carefully before you make a submission. Check the stock symbol, market price and special instructions several times before you make a final decision.
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Communicate with a stock broker if you need to place a complicated set of orders. Online brokerages typically have interactive customer support or hotlines you can access during the business day to help you invest wisely.
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Tips & Warnings
Determine if you will engage in day trading versus long-term investment before you place orders. All online-trading platforms and most brokers will ask you for the duration of trade orders to follow your investment plan to the letter. You need to give a specific hour, day or week to trade shares to avoid wasted money.
