“Francois: I read your article on using ‘buy limit orders' to buy shares at lower prices and decided to do it. But something seems to have gone horribly wrong. I tried buying R5,000 worth of shares with a limit price of 51c. But when I checked my account it only traded about R500 worth. My cost per share, after brokerage, is now 67c per share. What's going on???” - BM
The right tools, u... ››› more
When you buy shares, you have two options. You can either buy with a market order or a limit order.
So what's the difference? And is there a better option for you?
Let's take a closer look…
The difference between market orders and limit orders
Once you’ve decided what shares you want to buy, you need to instruct your stock broker to buy them for you. This will either by over the... ››› more
Once you start trading, you want to be able to set your trades up so you don't have to watch them all the time.
This includes setting take profit levels and stop loss levels.
So how can you do this?
It all comes down to using exit orders.
Read on to find out what you need to do…
How to use exit orders to protect against large losses
When you trade, you’ll never be right 10... ››› more
Once you start trading, you can use different orders when you place trades. But these can be a bit confusing.
So what are limit orders? And how can you use them when you trade?
Read on to find out…
Getting to grips with limit orders to open trades
Limit orders are orders you can leave with your trading company or stock broker to allow you to enter a trade automatically.
If you ... ››› more
When you invest in shares, you want to buy at the lowest price possible and sell at the highest price you can. This maximises your profit potential from investing.
The way you instruct your stock broker to buy shares has a big bearing on this. It all comes down to the type of order you use.
So what type of order should you use when buying shares to maximise your profit potential?
Read on ... ››› more
When you phone your stock broker to buy shares, you have two options.
You can buy shares at the current market price or you can tell your broker to only buy shares once they hit a certain price.
So how does this work?
Read on to find out…
How to buy shares at the current market price
If you want to buy shares, you can phone your stock broker or go onto your broker’s online p... ››› more
When it comes to selling your shares, the money you can sell them for is very important. Think about a share sitting nicely in profit. You want to try and sell it for as much as you can. So how can you do that? By using sell limit orders. Read on to find out more…
Selling your shares
When selling shares, you can tell your stockbroker one of two things.
You can instruct your broker to sell... ››› more
Once you open your stockbroking account, the next step is buying shares. As simple as this may sound, this comes with options. You can either place a market order or a limit order. Market orders simply mean you'll buy the shares at whatever price you can get them for. But by using a limit order, you'll only pay up to a certain amount for shares. Let's take a closer look at why limit orders are the... ››› more
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