Many ways to buy and sell
It sounds like it's easy to buy and sell stocks, but there are many ways to buy and sell stocks. I will try to point out several different ways that you can trade stocks on Wall Street. Of course, you do not have to use only one way to trade, and I always do different plays to help increase my portfolio. It all depends on the current market conditions and the economy.
Market order is the current price at the time of execution of the price of a particular stock. Remember that when you make a market order, you will get the broker at any price to find you at the fastest possible time. The problem with the market order I see is that if the stock moves up and down in a lot of transactions, you may lose some revenue.
The limit order is when you tell the broker what you are willing to pay for the specific price. This is the ideal way to buy and sell stocks (in my opinion). If the stock falls in an unstable pattern, you can set the price to the low end of the volatility and increase your earnings.
Trailing Stop Order
When placing an order, you inform the broker to sell the stock at a fixed price below the market price. This is known as a sell trailing stop order. As the price goes up, the stop price lags behind the fixed amount. If the price falls, the stop price remains at the trailing price from the high of the share price. The order will not be executed until the stop price is triggered. If you buy a stock at $ 20 per share, you will also set the stop price to $ 2. If the price climbs to $ 25, the stop price is $ 23. If the share price falls to $ 23.50, your stop-loss price remains fixed at $ 23. This strategy is used by traders and investors to help limit their losses without imposing limits on possible returns.