If you're looking to buy a stock I'm Going to show you step by step how to do It in this video there's no sponsor no Affiliate or as I like to say it no let's get straight to it so First I think this goes without saying But you really need to learn the basics Of investing before you buy your first Stock so in order to do that I'm going To refer you to a video I put together Earlier this year which is a one hour Crash course video on investing in the Stock market hyper relevant to this Particular year and through the process Of learning the basics you're going to Find out about what the stock market Actually is how to make money with Stocks and how to research a company if You can't answer these three questions Right now in a basic level I'm telling You right now you're not ready to buy a Stock just yet but that's okay I will Still show you how now in order to buy a Stock you are going to need somewhere to Trade and this is called your brokerage Platform this is going to be entirely up To you and I do not have any any Recommendation I personally have most of My money with Charles Schwab and I am Not affiliated with them or endorsed by Them in any manner now when it comes to Actually buying a stock there are Countless order types out there which is Essentially different ways you can
Execute a purchase or sale of a stock But I want to teach you two right now Because they're pretty much the only Ones that I use and the only ones that I Think you really need to know to do Basic buying and selling of stocks the First is the market order and that is Basically the easiest one to understand The market order is an order at the best Available instantaneous market price and That order is going to execute Immediately a limit order on the other Hand is placed when you are looking to Trigger at a specified price or better So for example looking at our chart on The left here you can see the yellow X Indicating a instantaneous Market buy Where basically that is the market price Right now that is where the order is Filled at in this case it would be a buy But it could also work for a market sell Order on the other hand the limit order You can see where the limit order is Placed indicated by the yellow X but it Didn't execute until the price passed Below that limit price and this would Apply to both a limit buy and a limit Sell order it has to meet that price or Be better for that to execute so simply Put you use a market order when you're Looking to have the trade execute Immediately but you are going to pay the Current market price that can be Problematic when you're trading smaller
Cap stocks so just be aware of that that Is one area where you definitely want to Be considering a limit order on the Other hand if you have a very set price In mind that you're looking to pay or Maybe you're looking to set an order to Buy at let's say eight dollars and if at Any point it gets to that price or Better throughout the day that limit Order executes that is when you would Want to use that order type now the good Thing is that Brack Shares are now widely available They're also on Charles Schwab referred To as stock slices which makes it a lot Easier to invest because you don't have To worry about the individual share Price of a stock if that was the case Looking at a company here called Berkshire Hathaway the essential Holdings company of Warren Buffett this Stock has never had a stock split so as Of August 26th their share price was Over four hundred forty thousand dollars So if it wasn't for fractional shares You would have to Pony up that much for A particular share of I believe this is Berkshire Hathaway class A shares Fractional shares allow you to buy a Specified dollar amount making things a Lot easier now in order to buy a stock You're going to follow four simple steps Number one you're gonna search for the Company by name or buy ticker symbol and
There's really no right or wrong way About doing that if you know the ticker Offhand that's probably the easiest and Fastest method second of all you're Going to specify an order type now as Mentioned there's going to be a lot of Them but I think the only two you need To know are the market order and the Limit order next you're going to Indicate the amount to purchase when You're buying that stock and that is Going to be the dollar value that you're Looking to put in and then you're going To finally review your order details Before submitting so let's jump into my Phone now into my Charles Schwab Brokerage account and we're going to buy One share of Ford stock okay so here we Are inside of my Charles Schwab Brokerage account and we're going to go Ahead and complete these steps one at a Time so step number one is to search for Our stock symbol so we are going to type In the symbol for Ford which is f so Once we type that in at the very top we See Ford Motor Company and we are now at The quotation page for Ford stock so Right now it's trading at 13.47 per Share and if I'm looking to buy I'm Going to go ahead and click on the green Trade button so let me click on that now And that brings us to the order screen Now a few things to note here you can See my available cash for Investments is
83. and 93 cents below that we have the Symbol you then have your options of Buying selling or short selling and then The quantity and then here are your Different order types now as mentioned Before we're going to stick to the Market and limit and then we will talk About this timing section at the very End so back to the top let's start off Here with the very top which is my Account my individual brokerage account When you open an account with your Broker you're going to have one with a Set identification number below that we Have the symbol which is correct now we Want to buy and this is where you have To make a decision about dividend Reinvestment I don't believe Ford pays a Dividend so I'm going to leave that off But if you are buying a dividend paying Stock you can turn that on and initiate Automatic dividend reinvestment at this Point you type in your quantity I'm Looking to buy one and then you click Done and and now you have an estimated Amount which is 13.52 now at that point You have to decide your order type which Is really going to be okay Market or Limit with a market order you're not Putting a price in because it's going to Execute immediately since the market is Open but if you do a limit order this is Where you set your limit price where it Needs to be this price or better to
Execute so if I was doing a limit order On Ford let's say I thought it was going To dip back to thirteen dollars by the End of the day I could come over here And do a limit with a 13 by value and It's not going to execute unless that Price is 13 or better if it is by the End of the day then I will get my share Now the last thing to note here is the Timing at the bottom and this is where You may want to be familiar with this Called good till canceled or also Extended hours trading the extending Hours trading session is closed right Now because we're in Market hours but You can do extended hours trading on Schwab which is cool you also have good Till canceled which is basically a 60-day order 60 calendar days so they Don't go forever but it is a 60-day Window so if at any point in those 60 Days your limit price is met that order Will execute on the buy side or the sell Side so for example Let's say I was trying to buy a hundred Shares of Ford at ten dollars and I Thought we were going to hit that price I could have a limit buy order at 10 Bucks and it could be good till canceled And then that means if at any point in The next two months or 60 days we hit That price or better that order will Execute but for now we're just going to Do a market order day only and then
We're going to click on the review Button and that brings us here to the Final screen this is where we have to Just confirm everything is correct so The symbol is f for Ford and the action Is a buy we're looking to buy one at a Market order type and it's a day only Order it's going to execute the minute That we close this and hit that order Button also since Charles Schwab is Commission free you can see the Estimated commission is zero dollars so At this point we basically can change The order do not place it or place it We're gonna place it and just like that The order was received now most orders Are going to execute immediately so You're going to Simply click on order Status and then you can see okay this Was in fact filled at a price of 13.46 And a half cent for my one share of Ford Stock and then if you actually click Into it you can look at the bottom and See something called price Improvement And this is actually something that is Important if you know anything about Payment for order flow that's why a lot Of the apps like Robin Hood even though They offered commission free trading at The beginning it's really not that Astounding anymore and sometimes you're Not even getting the best Um market price with those orders I'm Not saying specifically with Robinhood
But it is possible with different Investing apps so Charles Schwab does Tell you what the price Improvement is And that's any type of improvement they Can get on your order between Um the time of order execution and then The market Buy on their side so in this Case they were basically able to save me One penny in the process okay guys that Wraps up this video on how to buy a Stock I hope you enjoyed it and I hope I Answered all of your questions if I Didn't leave your questions down below And I will be sure to address them in The comments section like I said I have No sponsor no affiliate so that is Pretty much all I have for the video the Only thing I will mention is if you are Interested in learning about side Hustles and my side hustle journey I do Have my side hustle book coming out in January 2023 so if you want to find out More info about that the link is on my Shirt it's side hustle book dot info It's also going to be the top link down In the description below so be sure to Check that out if you want to learn About my side hustle journey and how I Basically quit my job for this YouTube Channel became a millionaire in the Process and am now able to invest and Grow my wealth even more and so now I'm Giving people a peek behind the curtains Of how that all went down uh but thank
You for tuning in I hope this helped you Out subscribe if you haven't already and I hope to see you in the next video
