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shakijloiana:Hi, this is a very good place to start learning new stuff with questions! im new to this trade! stocks stuff! the only thing i know is what i learned in american government class in high school last year !! should i just buy the stocks that are on my budge and that are growing , then sell then when they get to a higher price !
there is any information! tips! where I can learn how to buy! and when to make a smart move!
I try to buy but i didnt know what was the order type? limit price? duration? stop price? Preferred ECN? AON?
what are all this options? which should i select?
THANK YOU SO MUCH FOR ALL YOUR HELP!!!
Shakijoiana, I trade stocks that have good fundamentals and that have a
low stock price. GOOG has a low stock price at $500.04 per share. Some people buy stocks that have a good price history
(trend) that has been reliable to evaluate what their next pick will
be. They believe that a chart with a good trend is the way to pick
stocks. I like to find stocks that are undervalued given their
fundamentals. So each person has their own strategy when they invest in
stocks. I think it's best to use a combination and find the strategy
that works best for you. Of course, one way is to buy VTI and EFA and
just keep contributing to it long-term. That would be a passive
investor.
There's no guarantee that a growth stock will go up in
value. Quite the contrary, these can be the riskiest stocks (but also
the most rewarding stocks) in the market. When you use a limit order,
you want it to be a reasonable price. So, you might look at a chart and
put it somewhere between its current price and its lowest last price,
lowest last two prices, lowest last five prices, lowest of the last 10
prices, etc. For example, if the last lowest price was 8%, 6%, 4%, 10%,
12%, 3%, 8%, 12%, 9%, 7%, 14%, 16%, and 5%, and 6%, you might put in a
limit order at between 5-16% below the current market price, GTC order.
You might change that limit order to reflect market conditions so with
the banking crisis, having a limit order of 20-25% below the market
price might have still resulted in an execution.
If you really want
to own a stock and don't care about the price you wish to pay for that
stock; in other words, you really want an execution, than I'd put a
limit order between 0-5% below the market price as a Day or GTC order. The
reason why I suggest as low as 5% below the market price is because
trading might be volatile. So you might put in 10% at current market
price, 10% at 1% below, 10% at 2% below, 10% at 3% below, 10% at 4%
below, and 50% at 5% below.
I wouldn't do AON or stops. Stops are to automatically sell the stock if it reaches a low point to take a quick loss. To help reduce the number of losers (permanent losers), pick companies with solid financials. If you pick a stock that you feel comfortable with, you won't want to sell it unless you are looking at it as a trade. That's not to say you will not lose money, but it says that it is prudent to buy a company with solid financials.
Aqua