How to Do Share Trading

Beginners Guide of How to do Share Trading

When you are setting out to learn how to do share trading online, the first thing you need know is the terminology involved in trading stocks.

If you don’t know the terminology you’re doomed to fail, and that’s exactly why we’ve created this guide to trading stocks for beginners.

One of the best ways to get started in trading stocks is to learn from highly successful traders, such as the Trading Pro video tutorials featured here.

Stock Trading Terminology Explained

One of the first things you need to know when you’re learning how to trade stocks is all the terminology, jargon and types of trades, so let’s dive into explaining the basics of investing in stocks.

Types of Stock Trades for Beginners

Here are the 12 types of trades beginners must know about in order to learn how to do share trading successfully.

1. Market Orders

Market Orders are the most common type of stock trade. When you place a market order with your stock brokerage, it means that you want to buy the stock and you want to buy it now at the price it’s listed for on the stock markets.

For example, if you decide you want to buy shares in Facebook Inc and the current price on the market for shares in FB is $31.73 as you’re seeing it on a stock ticker. A market order tells the brokerage firm you’re willing to purchase Facebook Inc. stocks at the market price at the moment your order is received.

What this means is even though you saw a stock ticker price of Facebook shares at $31.73, the price of the stock has most likely already fluctuated so when you place a market order your agreeing to pay whatever price the stock is trading at the moment your order is received which means the price you pay could be higher or lower.

2. Limit Orders

When you are buying a stock, a limit order sends instructions to the stock brokerage that you have a maximum price you are willing to pay for a stock and your order will not get fulfilled unless the stock price is lower than then minimum amount you set.

Conversely, when you’re selling a stock on the market, a limit order can be set to instruct your brokerage firm not to sell your stock for any less the the minimum amount you’ll accept to sell.

When you’re learning how to do share trading, this may look like the best way to go when buying and selling stocks however it’s important that you know limit orders do not guarantee you’ll be able to buy or sell your stock at your desired price because this depends on what’s happening on the trading floors at the markets.

3. All or None Orders

All or None Orders are mainly applicable when you’re purchasing or selling large numbers of a company’s stock.

When you send the all or none order instructions to your stock broker it means if they are unable to fulfill the full amount of the order immediately, forget it.

The fact is when you place a buy or sell order with your stock broker, it can take hours, days or sometimes weeks to fulfill the entire order and because of the market fluctuations the stocks prices will vary on your order.

An All or None order means sell all the stocks or buy all the stocks and if the broker can’t find a buyer or seller for the amount of stocks you want to trade in one transaction, the order is essentially cancelled.
4. Stop Order and Stop Limit Orders

When you’re learning how to do share trading online, the stop orders are a very important aspect of stock trading you need to get to know more about and this is exactly why we highly recommend you join the video training course featured at the top of this page to fast track your success because this is where stock trading can start to get confusing for beginners.

This is more commonly known as a Stop Loss order because you essentially set a limit on your selling price and this is used to preserve your profits.

5. Short Selling Stocks

Short selling is a method used to make money from a stock that is falling in price, again for beginners that are learning how to do share trading this concept is very confusing at first and that’s exactly why you must enroll in a beginners training course such as the Stock Pro video tutorials.

6. Extended Hours Trading

Extended hours trading allows you to buy or sell stocks when the stock markets are officially closed.

This is a great thing to know more about when you’re learning how to do share trading. When you’re investing in a stock it’s important to stay in tune with announcements from the company you’ve invested in, quite often company announcements are released after normal trading hours.

When you do set up your brokerage account, you’re going to need to make sure you have access to extended hours trading in case there’s some bad news releases off-hours about a company you have a stock position in.

7. Bracketed Orders

Bracketed Orders are similar to trailing stop orders because you can set a fixed percentage on your profits to issue the order to sell.

When you place a bracketed order, the order will be immediately executed and you can walk away with your predefined profit margin, this is slightly different that a stop order in that the stop orders may not be immediately executed.

Once again, that’s why you need to make a small investment and enroll in at least one stock trading course for beginners before you dive into your online brokerage account and start making trades.

Share Trading For Beginners Summary

When you’re first setting out to learn how to do share trading online it can certainly seem a little overwhelming, however we’re here to encourage you and help you achieve success in achieving your dreams.

It’s important that when you’re first learning and before you rush off and start trading stocks that you spend some time here getting familiar with the terminology and jargon.

But it’s more important that before you start making your first trades when you’re figuring out how to do share trading that you invest in your success and enroll in training course such as the Trading Pro System video course, it’s such a minimal investment to make you’re education and future success.

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