You’ve been hearing about stock so often lately that it seems it’s the only thing people know how to talk about. It’s clear that stocks are all the rage, and each year more investors get into the game.
The opportunities that the stock market brings are virtually endless, and the rewards speak for themselves. That’s why you want in.
Working with stocks can be more than a little confusing for the newcomer, though. If you don’t know what you’re getting into, you could easily lose out on some serious cash.
That being said, here’s what you need to know as a first-time stock buyer before you make a purchase.
Here’s How You Can Make Your Purchase as a First-Time Stock Buyer
Buying your first stock will be so much easier if you opt for one of these choices. Read on to find out more.
Market Order
This is the most basic way to purchase a stock, and most likely the way you’ll want to do things starting out. Once you’ve made a few trades you might then wish to look at some of the best share dealing account options so you can start making an increased number of trades.
A market order stock happens when you request to purchase stock at the current market price. That means you’ll be buying at the standard stock price.
Market order transactions can be executed immediately, and are a safe option for beginners to get their feet wet.
Stop Order
This sort of stock works somewhat like a market order, except it’s only executed when a certain target price has been hit. This target price is called the stop price (hence the name).
When that particular price is reached, the stop order turns into a market order. At that point, you can make a trade at that market value.
Limit Order
A limit order gives you more control over how much you wish to pay. This order helps you “set a limit” on the price you’ll pay for a particular stock, and when that price is reached, you can purchase the stock.
Keep in mind that a limit order is only open for a limited time frame. If the stock you wish to invest in doesn’t reach the price point you’ve set, the deal is a no-go.
It’s also important to keep volatility in mind, as a drop in price could mean that shares are crashing.
As an extra tip, why not look into investing in food chains? There are many options to look into, such as Five Guys stock, that you can put your earnings towards. It may be just the thing you need to get started on your investment journey.
Take Care of Your Money
Now that you know the right moves to make as a first-time stock buyer, you need to know what else you can do to protect and grow your earnings. Luckily for you, we’re here to help with that.
Our site offers many articles to help you handle all aspects of money. We have articles on how to save, ways to spend your money wisely, how to invest like a pro, and so much more.
We’ve been helping others with their personal finance needs for over seven years. If you have any comments or are in need of financial know-how, don’t hesitate to reach out. We’re sure we can help you, too.
We are looking forward to hearing from you soon.