馃攳
Trading 101: How to Buy Stocks - YouTube
Channel: ClayTrader
[0]
so you just heard about this stock
[1]
market thing you want to buy some stocks
[3]
but hey how do you even do that I see
[5]
all these different order types what do
[6]
they mean let's talk about it first
[16]
thing before you can even do what I'm
[17]
about to talk about in this video you
[18]
need to take an initial step and that
[20]
initial step is signing up for a
[22]
brokerage and with the brokerage you
[25]
want to do an online brokerage don't go
[27]
to your community bank or something like
[28]
that and then go through their brokerage
[30]
because their fees are going to be crazy
[31]
so online brokerage I'll put a link in
[34]
the description below that I put
[36]
together a guide on kind of how to
[37]
select the proper brokerage for your
[39]
situation
[39]
we'll also flash up a link on the screen
[41]
here so that'll be down in the
[43]
description box below so that's step one
[45]
first got to get aligned with an online
[47]
brokerage after you get signed up maybe
[49]
you are already signed up you're going
[51]
to have a bunch of different choices for
[53]
orders in terms of how to buy and how to
[55]
sell so that's what I want to break down
[57]
in this video so we're just going to
[59]
take it one by one and hopefully you
[61]
know when you get through it all you're
[62]
going to understand what all those
[63]
little drop-down options mean you know
[65]
when you click that little arrow and you
[67]
see a bunch of choices maybe there's
[68]
just boxes you select or whatever but
[70]
regardless hopefully you've seen all of
[71]
these because they are very commonplace
[74]
so just for argument's sake we're going
[76]
to talk about a stock that is currently
[79]
trading at $25 so $25 current price of
[86]
stock we'll just call it ABC now the
[91]
first type of order you may see is what
[94]
we call a market order so what does
[101]
market order mean if you select that
[103]
option that means that I just want it
[106]
and not only do I want ABC I wanted at
[109]
any price it doesn't even matter to me I
[111]
just want into the stock I want to own
[114]
shares I want to buy it not in a few
[116]
minutes right now so market is just
[121]
saying I want it now and you're going to
[127]
pray whatever price the market gives you
[129]
so if this happens to fluctuate up -
[131]
let's just say 2502
[133]
so if that price goes up 2502 for
[136]
whatever reason no maybe like a split
[138]
second before you click the Buy button
[139]
and it goes up 2500 - it doesn't matter
[141]
you're getting in at 25 Oh - if it goes
[144]
and let's just say let's just it drops
[147]
to 24 you know 97 right before you buy
[152]
it doesn't matter you're getting in you
[154]
want it now so it's going to give you
[155]
whatever the market has the current
[158]
price at so that is what a market order
[160]
is next type of order a limit and all
[165]
strategies are different but a limit is
[168]
more times and not the order that you
[172]
want to be using because market orders
[174]
especially you know penny stocks or ill
[177]
liquid markets I can get you in quite a
[178]
bit of trouble but a limit but also at
[181]
the same time market orders do have
[182]
their place in the market so I don't
[183]
want to say like this is you know like a
[186]
black hole or anything I mean they have
[188]
their time in place but a limit order is
[190]
essentially saying I want it but so what
[199]
is the but the but is saying you know I
[201]
really do want that but I'm only willing
[203]
to pay a certain price for it so again
[206]
if the stock is trading at 25 you're
[208]
like you know I do want in - ABC but I
[211]
don't I don't want any at 25 you know
[213]
I'm only willing to pay $24.90 you would
[218]
select limit order and then when you
[219]
select limit your brokers going to ask
[221]
you okay well what is the but meaning
[223]
what price are you willing to pay so in
[226]
our example here you would put in a
[228]
limit order for twenty four ninety all
[234]
that means is you're not going to get
[236]
any shares of this unless the price hits
[239]
24.90 so if the price drops down and
[242]
hits 2491
[243]
you didn't get any shares if the price
[245]
goes up to twenty-five fifty you didn't
[248]
get any shares you were only willing to
[250]
pay twenty four ninety
[252]
on the order that's what a limit order
[254]
is the next type of order very very
[259]
important type
[264]
stoploss now the thing here is stop-loss
[269]
only pertains to you if you've gotten in
[272]
so either this or this order type has
[275]
already taken place in order for a
[277]
stop-loss order to be relevant to you
[279]
and a stop-loss is saying I want out now
[287]
the name the little deceiving because it
[290]
implies that maybe you're you know
[291]
stopping a loss but in other situations
[294]
you know especially when you get more
[295]
advanced trading a stop-loss can still
[297]
take you out of a position but it's not
[298]
really stopping a loss because you would
[300]
already be making money so it's not like
[302]
this pertains to only losing trades this
[304]
is just the way again of saying I want
[306]
out of the trade that could be a losing
[308]
trade it could already be a profitable
[309]
trade but you just want out now within
[312]
this family there are two types and
[313]
hopefully these both kind of sound
[315]
familiar there is a market stop and
[319]
there is a limit stop market is saying I
[325]
want out now so it is just going to get
[330]
you out of the trade whenever so let's
[332]
say you get in right here at 25 and
[334]
you're like you know what I only want to
[336]
risk 10 cents so you could put in a
[338]
market at 2490 and if the price goes
[342]
down there and hits 2490 bam your broker
[345]
is going to sell your shares and you're
[346]
going to get out but market means no
[349]
matter what so if the price really
[350]
starts to go down fast maybe by the time
[353]
all little computer algorithms do their
[355]
thing that's the price is that 24 you
[358]
know 85 well because you're doing a
[360]
market meaning you want out now it's
[363]
still going to just sell you and get you
[365]
out at 24 85 sure you said 24.90 but
[368]
because it's a market that's not a
[370]
guarantee the only guarantee is your
[372]
broker will get you out of the position
[373]
on the flip side the limit so we'll go
[378]
with this 2490
[380]
you're saying I want out but I'm only
[384]
willing to take a loss of up to 10 cents
[386]
meaning if the price does one of these
[388]
numbers we're just moving so fast that
[390]
it just essentially goes down through
[392]
your order which is possible depending
[394]
on how fast things are moving that
[396]
the way the market works but let's just
[398]
say something - the price - starts to
[400]
collapse like bad news or something
[402]
comes out in the price just whoosh you
[404]
know the toilet flush down it goes
[405]
because a lot of other people going to
[407]
try it 2490 you just may not have any
[410]
shares there you may not be able to get
[411]
out but the problem here is well you're
[413]
only willing to sell for 24.90 so when
[415]
the price hits 24 85 you're not selling
[417]
price hits 24 50 you're not selling
[422]
price hits 24 you're not selling because
[426]
you said well I'm only willing to sell
[429]
for 24.90 whereas the market sure it can
[432]
cost you a little bit more because maybe
[434]
you don't quite get out when you thought
[435]
you do but at least you get out so again
[438]
all orders have their time in place but
[442]
I'm going to just kind of circle this
[443]
one a limit stop-loss can be very very
[447]
risky for the situation where if some
[449]
sort of bad news comes out and if it
[450]
skips over what what your limit order is
[452]
you know who knows how low can get and
[455]
your broker is just going to hang on to
[456]
you of the shares because you told them
[457]
well I'm only I only want to sell at
[460]
24.90 so you know keep that order in
[464]
mind it can be you know I'm not going to
[467]
say to never ever ever use it but I'm
[469]
really struggling right now off the top
[470]
my head to think of an instance where
[471]
that sort of you know stop-loss order
[474]
maybe you know wise to use so these are
[477]
going to be the three main ones you use
[478]
now there's a whole other family of
[480]
orders called conditional orders but
[482]
that's more advanced maybe I'll come
[483]
back and do another video on that sort
[486]
of stuff but these are going to be the
[487]
backbone of the orders you know if you
[489]
ever watch any of my live trade videos I
[490]
mean these are the orders that I'm using
[492]
so it's not like because there's
[494]
advanced orders that means you have to
[495]
use them you know the planes
[498]
plain and simple order such as you see
[499]
right here are going to be more than
[501]
enough and then final or finally I
[503]
should say these aren't really ordered
[506]
types I suppose in a sense they're but
[508]
maybe you've seen GTC this just means
[511]
good today will cancelled meaning your
[518]
order is going to sit out there so if
[519]
you put in an or a limit order here for
[521]
24.90 it's going to sit there and sit
[524]
there and next week it's going to still
[526]
be sitting there three months from now
[528]
it's still going to be sitting there
[530]
opposed till this one I don't think
[532]
there's a universal term for it but
[534]
essentially applies you know it's good
[535]
till the end of the day so we'll call it
[537]
GTE good till end of day and this is one
[544]
where hopefully that's pretty
[545]
self-explanatory if by the end of the
[546]
day the price let's just say goes to
[548]
twenty five twenty five oh five twenty
[551]
five oh two twenty four ninety seven so
[554]
it's just fluctuating it never quite sit
[555]
twenty four ninety by the end of the day
[557]
well then this order is going to be
[559]
cancelled and you don't have to worry
[561]
about it so I see something like this is
[564]
if you forget about the order then it's
[565]
okay because it'll get cancelled at the
[567]
end of hope you're not forgetting about
[568]
orders but if you do it's going to
[569]
cancel itself but this one here if you
[572]
forget about it you know you may have a
[573]
surprise if you don't come back and
[574]
check your broker for you know another
[576]
three weeks and you're like oh yeah I
[577]
forgot about that order and it may be
[578]
sitting out there who knows maybe it's
[580]
been filled but that's going to be what
[582]
GTC stands for good till cancelled
[584]
opposed to the other type of orders
[586]
words you know just good up until the
[588]
end of the day so like I was saying
[589]
these are the you know not advanced
[591]
orders very basic but this is what I use
[593]
all the time in my everyday trading this
[595]
is what probably I was going to say 90%
[598]
of people use but I guess I don't really
[599]
know if that's a accurate fact or not
[600]
but majority of people I just use the
[602]
word majority majority of people do use
[604]
these order types and they're really all
[606]
that you need so limit market and then
[609]
your stop-loss orders here now you get a
[611]
grasp of these and how they work I just
[614]
like to remember it you know as these
[615]
you know market I want it now limit I
[618]
want it but and then you know you
[620]
combine these with the stop-loss which
[622]
when you're talking about stop-loss is
[623]
you just want out of the trade so hope
[625]
you found this helpful obviously this is
[627]
the design for more of the new people
[629]
out there so if you are newer and this
[631]
helped you out please click the like
[632]
button if you're new to the channel then
[634]
by all means subscribe a lot of other
[635]
videos and such on the channel I
[637]
released live trade videos chart
[639]
analysis videos all sorts of stuff so
[640]
definitely subscribe and check things
[641]
out hope you found this helpful
[643]
so get out there and happy trading
[650]
you
Most Recent Videos:
You can go back to the homepage right here: Homepage