Newbie stock question...

[Cuda1447]

Alright, so I'm a manger noob to stocks. I'm trying to figure out how I can sell and buy stocks at a certain price. I'm sure it has something to do with the limit/stop functions, but I can't figure out the difference between the too.


I tried setting a stop of 80.00 on a stock earlier today, hoping it would get up to that level and then I could sell it. It never rose that high, but it sold off for a lower price than what it was when I even put in the order.



There doesn't seem to be very good tutorials on this site.

Thanks for any help guys.

 

[TruePaige]

A limit order is what you are looking for.

Limit order for buy at .45 means you'll buy at .45 or cheaper
Limit order for sell at .45 means you'll see at .45 or more

 

[Cuda1447]

Cool thanks man. How does a stop offer differ?

 

[TruePaige]

Originally posted by: Cuda1447
Cool thanks man. How does a stop offer differ?

A Stop loss (as in "PLEASE STOP MY LOSSES!") works like this:

Say you enter a stop-loss order for $45. This means that if the stock falls below $45, your shares will then be sold at the prevailing market price.

Where as with a limit order you are trying to sell at a certain price, with this one you only sell if your stock drops to an unacceptable level.

Use them. =)

 

[IHateMyJob2004]

There is also a stop limit order.

Lets say ABC is at $50. You set a stop limit order where the stop is at $45 and the limit is $44.80. if the stock drops to $45, a limit order to sell at $44.80 will be entered. This is only really needed for low volume stocks where the bid once the $45 order is filled is ridiculously low ... like $30. So, your stop would be hit at $45 and the market order would go through and sell your stock for $30.

stop/limits are always better.

Seeing how I don't trade (and no one should) this really doesn't effect me. Buy value ad let price follow.

shameless plug:
gurufocus.com if you are a value investor. It's an awesome free forum.

 

[Cuda1447]

Cool thanks hatemyjob. Btw, when you say you don't trade - what do you mean by that? Are you saying that you just let stocks sit long term?

 

[bonkers325]

VSE is nice to learn, but its trading system is delayed and quite flawed. even if you put stop and limit orders, there are still 10-15 minute delays from activation to actual trade. and you lose an hour of trading time, so you miss the opening/closing of the markets.

the point is, take VSE with a grain of salt because it does not really representative of the real stock market

 

[imported_Lothar]

Originally posted by: bonkers325
VSE is nice to learn, but its trading system is delayed and quite flawed. even if you put stop and limit orders, there are still 10-15 minute delays from activation to actual trade. and you lose an hour of trading time, so you miss the opening/closing of the markets.

the point is, take VSE with a grain of salt because it does not really representative of the real stock market

I saw what you did there