<![CDATA[investor education - Savage Villoch Law]]> https://www.savagelaw.us/blog/tags/investor-education/ Wed, 06 Nov 2024 17:43:54 GMT en-us <![CDATA[Investor Education: Know Your Order Types Before You Buy and Sell]]> https://www.savagelaw.us/blog/buy-sell-order-types/ https://www.savagelaw.us/blog/buy-sell-order-types/ Fri, 21 Jul 2017 19:16:03 GMT Maybe you want to make it big as an investor. Maybe you just want a nest egg for retirement or financial security for your family. Whatever the reasons, thousands of Americans everyday make their first steps to becoming active investors. Before hitting the market though, there’s a lot would-be investors need to know; like understanding…

]]> Maybe you want to make it big as an investor. Maybe you just want a nest egg for retirement or financial security for your family. Whatever the reasons, thousands of Americans everyday make their first steps to becoming active investors. Before hitting the market though, there’s a lot would-be investors need to know; like understanding the different types of stock and securities investments, and how active an investment approach you’d like to take. Once you’ve got that down, you’ve got to know the buy-and-sell process of trading. For that, you’ve got to know your order types. While order types might vary in availability from firm to firm and among individual brokers, there are some common order types that everyone should know. That’s why the SEC has published an investor bulletin outlining common buy-and-sell order types that you should be aware of before you start investing.

Common Buy-and-Sell Order Types

Market Order

Market orders are orders to buy or sell a stock at the best available price, i.e. market price. While market orders are typically executed immediately, it’s important to know that the price something last traded at is not necessarily the price you will get.

Limit Order

A limit order requires that a stock be bought or sold at a specific price or better.

  • Buy limit orders can only be executed if the order is at limit price or lower
  • Sell limit orders can only be executed if the order is at limit price or higher

It’s important to note that limit order may not always be executed. They depend on the market price reaching the set limit price.

Stop Order

Stop orders, also called stop-loss orders are orders to buy or sell when a stock reaches a specified value. When that value is reached, the order then acts as a regular market order.

  • Buy stop orders are entered at prices above current market prices
  • Sell stop orders are entered at prices below current market prices

Investor Resources

These represent only the three most common order types available. You can also combine order types to further suit your investing needs. To learn more about different order types and more on these common order types, read the full SEC bulletin. Check out our archives for even more news and tips!

]]> <![CDATA[Common Online Trading Myths]]> https://www.savagelaw.us/blog/common-online-trading-myths/ https://www.savagelaw.us/blog/common-online-trading-myths/ Mon, 19 Jun 2017 16:16:44 GMT Nowadays, online trading has become a preferred method for many investors. From casual, at-home investors to more seasoned investors, online trading provides an accessible and efficient platform for securities trading. While online trading has grown in popularity, there are still some common misconceptions about it. You may have heard someone telling you that online trading…

]]> Nowadays, online trading has become a preferred method for many investors. From casual, at-home investors to more seasoned investors, online trading provides an accessible and efficient platform for securities trading. While online trading has grown in popularity, there are still some common misconceptions about it. You may have heard someone telling you that online trading is not secure or that you don’t have access to actionable investment advice with these platforms. This is untrue. We’ll take a look at 4 common myths surrounding online trading and set the record straight.

Online Trading Myths

  • Online trades don’t go through brokerage firms
    • This is a pretty common misconception. Just because you don’t deal with a broker-dealer directly when making investments using online trading platforms, does not mean that you are not trading through a firm. As an individual investor, you do not have direct access to the securities market. All online trades are still facilitated through a brokerage firm.
  • Online trade platforms do not feature live support
    • No matter what trading platform you use, you are always entitled to live support and advice. Most online trade centers feature a toll-free number or other point-of-contact if you’ve made an incorrect trade or need other investment information.
  • Online trade transactions occur immediately
    • While online platforms facilitate turnarounds on trades it does not mean that transactions take immediate effect. Investments may still have a price or time limit attached to them, or you may be trading in high volumes, which can result in delayed transaction times. Other things, like your internet connection or browser speed may affect transaction times.
  • Online trading is safer than in-person trading
    • You may think that broker-dealers are just out to take your money. This leads to the misconception that trading online is safe, because it cuts out the broker-dealer role. However, you can be your own biggest investment risk. Investors need to take careful consideration of their investment goals and trading limits before setting up an online account.

Investor Resources

You can find out more about online trading myths and other common misconceptions about securities trading on FINRA’s website. Contact us if you have more questions about online investing or protecting your investments.

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