How to Buy Stocks And Shares

how to buy stocks

How to Buy Stocks And Shares

etoroHow to buy stocks via Stock Market Oracle: When you get started as a member of my stock market investment tips service, you will get instant access to the member’s area. We have tried to make this part of the website site very simple and uncluttered. There are no volumes of technical data to examine. All the research has been done for you.

You will find a page called Data and Tips. This page is updated on trading days, by which I mean days when the New York Stock Exchange is open for business.

Very simply you will find BUY Signals (companies the system predicts to go on an upward trend) and SELL signals (companies who we expect to fall in price).

When will Data be Available?

We do not advise any buying during the first 30-45 minutes of the trading day. Prices are overinflated and volatile. The opening of the market is a good time to sell stock but a poor time to buy.

The member’s area will be updated by 10 am (New York Time) on active trading days. We do not trade every day – only when the system suggests we should. We are in this for the profit not to keep ourselves busy!

How to Buy Stocks And Shares

Once you have the day’s trading data to hand you can choose to go make a trade via any number of platforms. AvaTrade, Plus500, and eToro are all very good (in our opinion).

If you are responding to a BUY signal make sure you have the trade window set to BUY. I know it sounds obvious but you would not believe how many newbie investors accidentally open a sell position.

If you open a sell position you are basically betting that the company will decline in value. As a result, as the company improves in price (as we expect), you will lose money. If you have applied leverage to your order, this could cost you a lot of money.

When to Buy Stocks

You can place an order to buy or sell at any time. However, if the New York Stock Exchange (NYSE) is closed your trade will sit in your account as a pending order. When the market opens for business your order will be automatically implemented. For reasons already stated we advise against this.

It is much better to manually make the trade at the best time – this is what we do.

Remember, keep your emotions out of it. Gut feeling has no place in stock market trading.

Should You Use A Stop Loss?

A stop loss is a fixed amount you enter into the trade. It is the maximum you are prepared to lose if the deal goes south. Nobody likes to think about losing money but if you are getting into stock market investing and you are not prepared to lose money then you shouldn’t be even considering this as an investment opportunity.

We advise opening all trades with a 20% trailing stop loss. What this means is, if we have got it badly wrong and the company dives in value the most we can lose is 20% of our original investment. If you are using any sort of leverage a stop loss is essential for clear reasons.

What is a Trailing Stop Loss?

how to buy stocksA trailing stop loss is a set sell point that moves with the upward performance of the stock. For example, if we open a trade in Netflix and invest $5000 if all went wrong the most we would lose is $1000 (ie. 20% of $5000). However, if Netflix had an amazing couple of months and our investment increased in value to $7000 then the stop loss position would move with the peak. So now we can’t lose, because even if things fall back – our stop loss will active at $5600.

If you have any questions just shout or post your comments below.

About The Author: Craig Beck (craig@craigbeck.com) is the author of several bestselling wealth creation books and audiobooks. Including ‘Building Extreme Wealth’ and ‘Millionaire Mindset’, available on Amazon, Audible and Itunes. Craig has been profiting from his in-depth knowledge of worldwide stock markets for many years. In 2018 his respected stock market investment tips service ‘Stock Market Oracle’ completed it’s hugely successful beta testing phase and opened up to new members – more information.

 

 

 

Stock Market Oracle

Senior analyst and system creator of Stock Market Oracle

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