Online trading of stock - Buying and Selling of stock, Investing in Stock Markets Video Lecture | Investing in Stock Markets - B Com

hello folks this is LS your astana here
I would like to show you in this video
how we would go about buying shares and
selling them online using online
discount broker I've had a few mentees
of mine asking me how essentially we
would go about trading shares or buying
selling them online so I have a way here
my online discount broker options
Express OPEN once you've opened your own
account what you can do then is
essentially you just go on this tab you
see here and you just choose the one
that says stock once you press stock
then this page will open as you can see
here I'm I'm not gonna take a step by
step through the procedure of how we
place a buy order to buy some shares in
this example you see here it's it asks
for the stock symbol so the stock symbol
I'm going to choose here is going to be
Microsoft no specific reason why I'm
choosing Microsoft it's just this
example I'm doing if you don't know the
symbol of your stock all you do is go on
this function here's this fine symbol
now so action what do you want to do to
buy in a Cell I'm placing a buy order
some buy quantity so I'm buying uh let's
just say 100 shares let's give it a
round simple figure buying 100 shares of
Microsoft next bit says market now you
see a number of different options here
so I'm going to take a quickly quick
quickly through what these options mean
just a few of them the first one by
market essentially if you place a buy a
market order you're saying to the online
broker I'm buying those hundred shares
of Microsoft whatever the price I'm
offered right now
so whatever the current market price of
Microsoft is right now one of the
trading prices I'm buying it at that
price now if you look at the bottom of
the screen when you notice here it gives
you the information about Microsoft
shares right now so if you can get this
by the way by just going on a box here
and typing the symbol of your stock just
pressing go
no no serious says the last trading
price of Microsoft was $30.00 0.02 cents
over here's the bidding the ask
so the
asking price for buying Microsoft shares
right now is $30 zero point zero seven
cents now I should distress this I don't
use market orders I don't like market
orders they tend to be essentially I
want to exercise some control about what
price I want to buy my shares at let's
go through the next one limit order when
you choose a limit order what you're
saying essentially is you're saying to
the online broker I want to buy those
shares of Microsoft at a lower price
than thirty point zero seven dollars so
that means your limits price whatever
price you put into this box here must be
lower than the current asking price for
Microsoft the current asking price of
Microsoft is $30 zero point zero seven
cents so I'm gonna say I'll buy them at
a lower price at a cheaper price at
let's say twenty six dollars so that's
twenty six dollars tacked in there okay
why would you do that
just just outta curiosity wondering why
would you want to choose a lower price
there are for example and there are
traders who buy for example at pullbacks
you might have let's say for example you
have a stock that's going up like this
some traders for example say well I'm
going to buy them when they pull back to
a lower price like for example I pull
back to a trend line about pull back to
it a moving average for example that's
the reason why those traders would use a
limit order to buy at a much lower price
than the current price now let's go to
the next one so now I'm going to show
you what this one is by stop if you
choose a buy stop you're saying to the
online broker I'm going to buy those
shares when they're above thirty point
seven dollars so this means the amount
the price that you put into this box
must be above higher than $30 zero point
zero seven cents so I'm just going to
choose thirty two dollars for example
why would you do that if you're
wandering these stop orders are usually
used by momentum traders breakout
traders you might have
for example let's pretend that let's say
Microsoft shares are trading in a range
all ating going sideways like that not
doing much really
now you let's say you got your
resistance level at the top here and you
got your support level at the bottom
here now a momentum trader or a break a
traitor can say look I'm only going to
buy those shares when they break out
through that resistance level now if
this resistance level let's say it's 30
then I'm gonna buy them only when there
are 32 when I've seen some serious
upward momentum in the stock now that's
essentially what the stop order is there
for the next big here is stop limit I
should just say I don't use döblin it's
purely because they're too restrictive
as to the price that you want to trade
with they also cut they also come with
some major disadvantages which I don't
have time to go through in this
particular video but I should just say
that I don't think Lee use them these
stop limits we'll go through that for a
separate video and I just upper training
video okay now the next bit is I'm going
to choose the good until cancelled which
means essentially this order will remain
in place until I manually close it
myself
we can leave the same as default default
as it is advanced orders I should just
say again I don't particularly use these
advanced orders the first one says
trailing stop if you want to spit if you
want to trail your stop-loss
automatically now I would like to say
that I don't automate my trading stop
losses I do use a trailing stop loss but
I don't automate them using this
function I prefer to manually trail my
stop-loss the only one other one I use
here is probably this one one triggers
other stuck now I should just say that
you could use this if you want you don't
have to but I'll explain this to you a
bit later in this video so essentially
now that you've chosen your options so
you're buying 100 shares of Microsoft at
a stop $32 so you're saying is you're
buying them at $32 or above then what
you got to do next is just press this
button
preview order and once you press that it
will take you to another page to just
preview your order and then you just
press submit
all right now we've done that well the
next thing we're going to do now is
we're going to place our cell order on
the same stock so go back and play it
just type in Microsoft select cell so
notice what we're doing here is we're
placing our stop loss in other words
we're placing our protective stop-loss
or protective cell odor just in case the
share price went against us so quantity
again 100 shares and cell stop and what
you're saying is okay I want to buy
notice we bought them a 32 so I'm going
to say we're gonna sell them let's say
if they come to 29 which means your risk
here is $3 and yes again good until
cancelled and I'm Lee there's none okay
let me show you now why we would use
these 1 triggers other stock what we can
do in this situation is let's say for
example you bought the shares at $32 the
idea behind 1 triggers other stock is
you can link your stop loss to your buy
order so essentially when you bought if
you're buying shares at $32
which is your buy stop you can link this
to your stop-loss of 29 linked them
together why would you do that because
that means you as soon as your buy order
is triggered as soon as your shares of
100 shares of Microsoft have been bought
automatically your stop-loss 29 will
come to effect so this is a good idea
for linking both orders together rather
than doing them separately okay folks so
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