Menu

How to make a stock trade

So many people are asking how to get in on marijuana stocks or how to place a trade. First you have to Sign up with a stock broker and deposit some funds. You could also talk to your bank and ask about an account for trading stocks. My main stock broker is Scottrade.com but I also trade with my bank. I like Scottrade because I can place my own trades online for $7 a trade, it’s a little higher fee for penny stocks. This way I can also sell my stock anytime I want at the click of a button. If you were going to place a trade on regular stocks it’s pretty simple. Let’s say you were going to buy Ford stock and the price is $12 a share and you want 50 shares. You would go to the trade screen and you have a few options. You would just select ‘Buy’ and the symbol for Ford, ‘F’, then enter the amount ’50’ shares and it would be at ‘Market’ which means the current price of $12. That’s pretty much it, you would enter and review your order and then confirm. In most market orders like that your trade would go through in seconds. That’s it, you hold your shares or position until you want to sell which is hopefully at a profit. When you do you would then just select ‘Sell’, ‘F’, ’50’, at ‘Market’ and your done. Now, if you want to trade penny stocks it’s a little bit different and slightly complicated at first but once you do it a couple times it’s no problem. With penny stocks you would still select ‘Buy’, the stock symbol, amount of shares, and instead of market it will be a ‘Limit’ order. I’ll try to explain why later. Then you have to enter a price. Today I bought 6000 shares of CBIS stock at 0.0115 cents a share. At the time the ask price was 0.0117 and the bid price was 0.0113 so I placed my price in between at 0.0115 figuring it would probably go through quick and it did. That was Buy, CBIS, 6000 shares, Limit, at 0.0115 and GTC. You can select ‘Day’, which means if your order isn’t filled by the end of the day your order will be cancelled. If you pick GTC it is Good Til Cancelled and your order will stay open until it is filled or until you cancel it. That’s pretty much all there is to it. You watch the price and hope it keeps going up and if you decide to sell it’s almost the same except you will enter Sell, CBIS, 6000 shares, Limit, and whatever the sell price is. It generally happens within seconds but can take several minutes or longer with penny stocks if you have a lot of shares. Last week I sold 60000 and it took maybe 20 minutes for it to all get sold. With penny stocks or what they call Bulletin Board and Pink Sheet stocks you have to place your order with a limit price and without getting complicated about it I usually place my price between the ask and bid price. A trade happens between a buyer and a seller. When you see the ask price that is someone else wanting to sell X amount of shares at their ask price. When you see the bid price that is someone else wanting to buy X shares for their bid price. You limit price needs to be somewhere in that range if you want to make a quick trade. But if you want to buy at a lower price you can enter a lower price and wait to see it the stock will drop. Same goes with selling, you can enter a higher than market price at your stock will only sell if the market price meets your price limit. Any questions? If so send me an email and I’ll try to help you out. Denver@denvers.co