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THE TIME TO BUY OR SELL A STOCK

February 26, 2010

The ultimate guide that most follow for successful stock  investing is to buy low and sell high. However, no matter in which economic condition we are, we need to know the trick how to do it.

Let’s face it, the regulations and opportunities are same for everyone and the seasoned stock traders didn’t get born with their minds imbedded with stock market lessons. Whether you are a novice or experienced stock trader, you need to do some homework, studying and testing the different stock market investment strategies to take the advantage of stocks.

If you are buying stocks, first you need to decide what and which company to buy the stock in. Any public held corporation holds a better position to buy the stock in rather than the privately held corporations. Selecting the company to invest in is like finding a needle in a haystack. A proper analysis is needed to select the best out of the lot.

Next you need to find a broker. A stock market broker is the only person that can buy or sell stocks for you. You don’t need to flip the yellow pages to find a stock market broker. There are many online trading brokers who would pass on the order for you. Once you choose the brokers from the online trading brokers, they will do the rest of the work. Market order is the most basic order where stock traders ask the brokers to buy or sell their stocks at the best price available. Limit order takes more stock market investment research and predictions to do. Here traders only trade when the stock is at a certain price or at a better stage. Stop order, on the other hand, saves the stock trader a lot from extreme loss. If the stock drops low, you can tell the broker to sell the shares and fix the price.

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