edwinOnline trading is quick and easy, but online investing takes time.
With the click of a mouse, you can buy and sell stocks from one of the many online brokers offering low-cost trades. Although online trading saves investors time and money, it does not take the homework out of making investment decisions. You may be able to make a fast trade, but making wise investment decisions takes time. Before you trade, know why you are buying or selling, and the risk of your investment.
Set your price limits
If you place an order, check to make sure it was executed
If you cancel an order, make sure the cancellation worked before placing another trade
If you purchase a security in a cash account, you must pay for it before you can sell it.
Set your price limits
To avoid buying or selling a stock at a price higher or lower than you wanted, you should place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Your limit order will not be executed if the market price quickly surpasses your limit before your order can be filled. But, by using a limit order, you protect yourself from buying the stock at too high a price or selling it at too low a price.
If you place an order, check to make sure it was executed
Some investors mistakenly assume that their orders have not been executed and place the order again. They end up buying or selling twice, which can be a costly mistake. Talk with your financial services firm about how you should handle a situation where you are unsure if your original order was executed.