Here's the Video Transcript:

so you just heard about this stock market thing you want to buy some stocks but hey how do you even do that I see all these different order types what do they mean let's talk about it first thing before you can even do what I'm about to talk about in this video you need to take an initial step and that initial step is signing up for a brokerage and with the brokerage you want to do an online brokerage don't go to your community bank or something like that and then go through their brokerage because their fees are going to be crazy so online brokerage I'll put a link in the description below that I put together a guide on kind of how to select the proper brokerage for your situation we'll also flash up a link on the screen here so that'll be down in the description box below so that's step one first got to get aligned with an online brokerage after you get signed up maybe you are already signed up you're going to have a bunch of different choices for orders in terms of how to buy and how to sell so that's what I want to break down in this video so we're just going to take it one by one and hopefully you know when you get through it all you're going to understand what all those little drop-down options mean you know when you click that little arrow and you see a bunch of choices maybe there's just boxes you select or whatever but regardless hopefully you've seen all of these because they are very commonplace so just for argument's sake we're going to talk about a stock that is currently trading at $25 so $25 current price of stock we'll just call it ABC now the first type of order you may see is what we call a market order so what does market order mean if you select that option that means that I just want it and not only do I want ABC I wanted at any price it doesn't even matter to me I just want into the stock I want to own shares I want to buy it not in a few minutes right now so market is just saying I want it now and you're going to pray whatever price the market gives you so if this happens to fluctuate up – let's just say 2502 so if that price goes up 2502 for whatever reason no maybe like a split second before you click the Buy button and it goes up 2500 – it doesn't matter you're getting in at 25 Oh – if it goes and let's just say let's just it drops to 24 you know 97 right before you buy it doesn't matter you're getting in you want it now so it's going to give you whatever the market has the current price at so that is what a market order is next type of order a limit and all strategies are different but a limit is more times and not the order that you want to be using because market orders especially you know penny stocks or ill liquid markets I can get you in quite a bit of trouble but a limit but also at the same time market orders do have their place in the market so I don't want to say like this is you know like a black hole or anything I mean they have their time in place but a limit order is essentially saying I want it but so what is the but the but is saying you know I really do want that but I'm only willing to pay a certain price for it so again if the stock is trading at 25 you're like you know I do want in – ABC but I don't I don't want any at 25 you know I'm only willing to pay $24.90 you would select limit order and then when you select limit your brokers going to ask you okay well what is the but meaning what price are you willing to pay so in our example here you would put in a limit order for twenty four ninety all that means is you're not going to get any shares of this unless the price hits 24.90 so if the price drops down and hits 2491 you didn't get any shares if the price goes up to twenty-five fifty you didn't get any shares you were only willing to pay twenty four ninety on the order that's what a limit order is the next type of order very very important type stoploss now the thing here is stop-loss only pertains to you if you've gotten in so either this or this order type has already taken place in order for a stop-loss order to be relevant to you and a stop-loss is saying I want out now the name the little deceiving because it implies that maybe you're you know stopping a loss but in other situations you know especially when you get more advanced trading a stop-loss can still take you out of a position but it's not really stopping a loss because you would already be making money so it's not like this pertains to only losing trades this is just the way again of saying I want out of the trade that could be a losing trade it could already be a profitable trade but you just want out now within this family there are two types and hopefully these both kind of sound familiar there is a market stop and there is a limit stop market is saying I want out now so it is just going to get you out of the trade whenever so let's say you get in right here at 25 and you're like you know what I only want to risk 10 cents so you could put in a market at 2490 and if the price goes down there and hits 2490 bam your broker is going to sell your shares and you're going to get out but market means no matter what so if the price really starts to go down fast maybe by the time all little computer algorithms do their thing that's the price is that 24 you know 85 well because you're doing a market meaning you want out now it's still going to just sell you and get you out at 24 85 sure you said 24.90 but because it's a market that's not a guarantee the only guarantee is your broker will get you out of the position on the flip side the limit so we'll go with this 2490 you're saying I want out but I'm only willing to take a loss of up to 10 cents meaning if the price does one of these numbers we're just moving so fast that it just essentially goes down through your order which is possible depending on how fast things are moving that the way the market works but let's just say something – the price – starts to collapse like bad news or something comes out in the price just whoosh you know the toilet flush down it goes because a lot of other people going to try it 2490 you just may not have any shares there you may not be able to get out but the problem here is well you're only willing to sell for 24.90 so when the price hits 24 85 you're not selling price hits 24 50 you're not selling price hits 24 you're not selling because you said well I'm only willing to sell for 24.90 whereas the market sure it can cost you a little bit more because maybe you don't quite get out when you thought you do but at least you get out so again all orders have their time in place but I'm going to just kind of circle this one a limit stop-loss can be very very risky for the situation where if some sort of bad news comes out and if it skips over what what your limit order is you know who knows how low can get and your broker is just going to hang on to you of the shares because you told them well I'm only I only want to sell at 24.90 so you know keep that order in mind it can be you know I'm not going to say to never ever ever use it but I'm really struggling right now off the top my head to think of an instance where that sort of you know stop-loss order maybe you know wise to use so these are going to be the three main ones you use now there's a whole other family of orders called conditional orders but that's more advanced maybe I'll come back and do another video on that sort of stuff but these are going to be the backbone of the orders you know if you ever watch any of my live trade videos I mean these are the orders that I'm using so it's not like because there's advanced orders that means you have to use them you know the planes plain and simple order such as you see right here are going to be more than enough and then final or finally I should say these aren't really ordered types I suppose in a sense they're but maybe you've seen GTC this just means good today will cancelled meaning your order is going to sit out there so if you put in an or a limit order here for 24.90 it's going to sit there and sit there and next week it's going to still be sitting there three months from now it's still going to be sitting there opposed till this one I don't think there's a universal term for it but essentially applies you know it's good till the end of the day so we'll call it GTE good till end of day and this is one where hopefully that's pretty self-explanatory if by the end of the day the price let's just say goes to twenty five twenty five oh five twenty five oh two twenty four ninety seven so it's just fluctuating it never quite sit twenty four ninety by the end of the day well then this order is going to be cancelled and you don't have to worry about it so I see something like this is if you forget about the order then it's okay because it'll get cancelled at the end of hope you're not forgetting about orders but if you do it's going to cancel itself but this one here if you forget about it you know you may have a surprise if you don't come back and check your broker for you know another three weeks and you're like oh yeah I forgot about that order and it may be sitting out there who knows maybe it's been filled but that's going to be what GTC stands for good till cancelled opposed to the other type of orders words you know just good up until the end of the day so like I was saying these are the you know not advanced orders very basic but this is what I use all the time in my everyday trading this is what probably I was going to say 90% of people use but I guess I don't really know if that's a accurate fact or not but majority of people I just use the word majority majority of people do use these order types and they're really all that you need so limit market and then your stop-loss orders here now you get a grasp of these and how they work I just like to remember it you know as these you know market I want it now limit I want it but and then you know you combine these with the stop-loss which when you're talking about stop-loss is you just want out of the trade so hope you found this helpful obviously this is the design for more of the new people out there so if you are newer and this helped you out please click the like button if you're new to the channel then by all means subscribe a lot of other videos and such on the channel I released live trade videos chart analysis videos all sorts of stuff so definitely subscribe and check things out hope you found this helpful so get out there and happy trading you

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