Place an Order

Global Trading Masterclass
Wealth Talk
Customer Service
My Account

(3) Place an Order

Placing Your First Order

The main type of order we recommend in our strategy is a Limit Order (LMT).

With a Limit Order, you enter the price at which you wish to purchase an instrument.

For example, the current (market price) of Rio Tinto [LSE:RIO] might be 4900 GBX.

Assuming there is some evidence that throughout the trading day it could soften, you might enter a Limit Order of 4850 GBX.

Source: Interactive Brokers

A good strategy is to review the pattern over the past several days and month. Get a feel for the trading pattern from opening price. And keep your eye on any news tickers and upcoming events.

For example, if the stock has just gone ex-dividend, we may expect it to fall a bit — since you won’t get the next dividend when buying at this time.

If a bonus dividend or buyback has just been announced, it could lift.

Then you should review the market depth. This shows you the number of buyers (Bid) and sellers (Ask) in the market. Look out for any large bids or recently filled orders.

For example, in the stats below we can see a buyer traded £30m at 4911.50.

Source: hl.co.uk

When setting your Limit Orders, you need to process all this information and enter the most strategic limit you think suitable.

The more you trade, the more your judgment will refine and grow.

Of course, Limit Orders will sometimes mean you miss out on a trade that day altogether. But when buying stocks, it’s important to remember — you make money when you buy.

Forex

If you’re buying stocks in a foreign currency, you need to consider the impact of foreign exchange. Ideally, you want to be entering markets with currency upside against your account currency.

For example, if GBP is soft against your currency, it may be a good time to buy GBP and stocks on the LSE (London Stock Exchange).

With a cash brokerage account, you will first need to purchase the forex in order to place orders for stocks in that currency.

Again, use a lower limit order, observe the spread between Bid (buyers) and Ask (sellers) and study the expectations for the currency pair.

Risks

Remember, with any online trading there are user and market risks.

• Software risk: trading platform is temporarily unavailable during updates or maintenance
• Risk of error: entering incorrect orders or amounts
• Risk of loss: stock or currency movements go against you
• Risk of limit orders not being filled

For more detailed training on placing orders, a good place to start is with our Global Trading Masterclass.

This is an add-on training module to Lifetime Wealth Investor. Depending on your subscription, you may or may not have this optional module loaded.

👉 Please click here to view or purchase this module

(4) FAQ