Im very new to trading and still in the leraning proces so please forgive me if my questions are rather basic. when you buy shares , you have the option to buy the shares at a limited price or at market price, what is the difference between these two and how do they affect your share price when you want to sell? also which is advisable for long term investment and which for short term?
yo. at market price is the bid or offer that is first in line. limit is when you choose the offer or bid price. if this doesn't make sence i'm sure one of the other dudes here will tell you in more detail what it means. cheers
The market price is current at the minute (this changes from minute to minute) so if you buy on a uptick it will be more expensive (by a few cents) or a downtick will be cheaper(by a few cents)(when trading 1000 of shares it is a lot of money on 1 share its pocket change) buy at limit is, you determine your entry price ( if the market price fails to cover it, you don't get your order filled. if your price is above market, your order gets filled (and you should get charged market price anyway)
thanks guys, now that i understand the difference, are there particular benfits for choosing one over the other and when does use either of them? sorry to bother guys, its had me confused for some time now
Hey Learning, best advice - Do all the OST courses you can when they roll around to yr neck of the woods; define why you are investing - Trading daily vs Long term 5 - 10 years ; read as many books as you can to get an understanding of the mechanics of the market - HOW IT ALL WORKS not what drives or sets prices; then try to be patient, watch a few shares on paper / excel trade them in theory, watch them as closely as you can, learn the lessons from exiting too early & too late etc etc. Only once you have really a good feel, then commit small amounts - write off a few 1000 to school fees. If you find a share that is a winner, don't think that you are a market whizz & can repeat that fluke at will. Read Johns post regarding teh life of a trader, read the post about Where is Brazen? there are lists of people who have come & gone from here - more having left because their cash ran out than were booted off. Join Werner's website community & read all the posts etc etc READ READ LISTEN LISTEN then start slowly - Enjoy & good luck.