did you know that you could be buying stocks on Webull the incorrect way? there's a much better
way there's a way that you can actually save money and if you're just a beginner you're just
starting off with Webull, this video is here to help you decide what way to buy stocks on
Webull might be more beneficial to you that you might not be thinking about what we need to cover
is specifically when the Webull app and what i'm going to do is live here on video i'm going to
take you through exactly how to buy a stock i'm actually going to show you step by step how to
do this the right way now a lot of people just go in and what they do is they look at a stock
that they want to buy let's say i don't know whatever apple tesla microsoft whatever stock
you want to buy you go in and you just hit the buy button that might actually be costing you
money over time because what a lot of people don't know especially when they're beginners
and they're just starting off is the fact that there's a difference between market order and
limit order now here's the big difference a market order is specifically saying i am buying the stock
at the price that it's currently going for let's take tesla for an example right here you can see
on weibull the current price for tesla is going for about 774.75 so if i come down here and i type
order type market and i want to buy let's say you just want to buy one share you're going to
be paying exactly what that price is going for at that time 7.74 all you do is you hit buy and then
you're done with it but you could have gotten a better deal so here's the big difference with
a limit order i come here to the order type and i click on the arrow and then i choose the very
top option that says limit i'm going to click on that and now it allows me to name my price
where this can be very effective is as a buyer you want to make sure you're getting the best price
think about it you go to the grocery store you go somewhere to buy something you want to make sure
you're getting the best deal right you don't want to overpay for a loaf of bread you want to get
that loaf of bread at the best possible price and that's exactly what's going on here if i select a
buy limit order i can set my price now i can use the plus and the minus right here on the weibo app
or i can tap on it and literally set my price now there's a couple things to keep in mind don't set
it to i want to buy it at a hundred dollars a share because the likelihood of tesla falling
from 774 dollars to a hundred dollars today would be damn near impossible but you could say
hey okay if it's going right now for 774.90 let's say if it goes from 774
60 i want to buy one share now that's a couple cents but hey money's money money is money is
money right so anytime that you have a chance to score a discount let's take advantage of that
especially if you think there's going to be good fluctuation throughout the day another thing that
you could look at is if you think that there's a lot of volatility today and that this stock
could potentially drop by a dollar set your limit price to 773 hit buy and what happens in a limit
order is that it gives you that option to then buy the share at the discount so let's dive in
just a little bit more to explain exactly how this works so there's two ways you can do this within
weeble you can say i want to set a limit order for a certain price by the end of today and that
means by the end of the stock market day you have a second option the second option is i want to set
a limit order for this price not only by the end of this day but i'll also do extended hours that's
the beauty of weeble they offer you extended hours so you go and you indicate which option you want
and then weeble will do its best now it's only if it hits your limit price so in our example of
tesla if it doesn't hit our price that we named we're on a lock but if you think that maybe
a month from now or 60 days from now that price could be reached then what we want to do is set a
limit order and we want to do good until cancelled in the order type good until cancelled will allow
this limit order to remain active up through 60 days now one thing you got to keep in mind
is keep an eye on your cash balance unless you're trying to use margin the key point is here you
have an active order for the next 60 days if that price that limit price gets hit within weibull
you will buy that share of stock which means if you don't have the cash available you're either
going to dip into margin or your trade is going to fail so make sure you have the cash available
over the 60-day period that this limit order is active then after 60 days if it doesn't hit the
limit order that means your share did not execute you didn't get to buy your share and the order
will officially cancel that's what good to cancel means but the beauty of that is is you can say i
want to bet on a discount i want to say that this price will be set at 772 dollars for tesla if it
hits 7.72 at any period of time in the next 60 days i want you weeble to buy me one share of
that stock without me having to log on to the app 5652 times a day to check to see what the price is
i'm gonna set it and forget it over the next 60 days that's the beauty of a limit order you can
also do this with selling you can set your price for selling anytime that you want that means
that at this price i want you to sell my share of stock if it reaches that price you're good you can
do the same type of setup in the order flow that means you can set it either in the day daily stock
market after hours extended hours within weeble or you can do the good until cancel which means
it won't just be for the current day it will be all the way through for the next 60 days good
until canceled so when should you actually go with a limit order well that's a great question here
are some ways to think about if you should do a market order when you buy your stocks in weibo or
a limit order number one consideration is you want to specify your price you don't want to just get
it at the market price sometimes much different from where the stock is currently that could be
a good reason to set a limit order another good reason is you want to trade a stock that's really
a liquid or has a very high bid ask spread and that's usually more than five cents now the bid
ask spread is the difference between the buyer and the seller and what they're willing to either
buy or sell the stock for sometimes stocks that don't move as quickly as some of these big boys do
will have a higher bid ask spread and that means if you're buying a stock that you believe in that
doesn't move a lot in volume you really need to consider element order and the last consideration
is maybe you're trading a high number of shares for example more than 100 so if you want to buy a
hundred shares of stock that 10 cents or one cents difference between a limit order and a market
order can add up quite quickly so it might be good regardless of how liquid or illiquid a stock is
you buy it anyway because that gives you that option to save a few extra pennies and spread
across 100 shares it definitely adds up so i decided to do this recently with vti let me show
you exactly how it worked i decided to hit a trade and instead of doing the market order i selected
limit order now for this particular example it was a couple days ago the current price as you
can see was 224.44 now vti was on a drop on this particular day and i said hey this is
an opportunity i could get it at even more of a discount so what i did is i set my limit price
to 223.50 i said i wanted to buy one share if vti in the course of today on regular stock
market hours only hits 223.50 i want to buy one share so then i confirmed i hit go and then it
kind of sat there until it did or did not trade well guess what it ended up trading which means
that that stock price hit 223.50 in the course of the day and check it out there is my proof right
there purchased 920 for 223.50 it worked so i literally set this like early in the morning
when the stock market first opened went away came back later in the day i said hey it looks like
right around one o'clock in the afternoon eastern time i got my wish and it came true how awesome is
that you can see that's quite low for my last order back on 917 when it was going for 230
a share that's pretty cool and that's a good way and a good example of using a limit order
to buy in the right fashion now how does this work on a desktop a lot of you ask hey you show
the app what about the desktop let's look at the weeble desktop and exactly how that works so right
here is the weibo desktop and you're actually viewing this from an imac point of view but
it works in the same fashion so right over here on the side once you select whatever stock you're
looking at in this case we're looking at apple i'm going to say buy and here it is a limit order
quantity let's say we're only going to do one because we're just starting off with one
name your price what is your current price now keep in mind what the current price is going for
146.92 so we want to set something lower than that at maybe like 140 680 again you can go lower than
that if you want to especially if you're going to do a good till canceled order in which case you're
going to wait until it hits maybe 1 45 130 120 in the next 60 days if you are bullish and you want
to take advantage of a discount without having to worry about missing that discount so uh in this
case what we're going to do we're only going to do 146.80 and we're going to say time and force is
day again i could do good to cancel but i'm pretty confident that in extended hours because that's
what we're in right now this is actually going to drop to 146.80 and in which case it will fulfill
my order so all i have to do is hit buy apple it will pop up a confirmation screen and then i hit
buy and then i'll be good to go now if it doesn't for whatever reason hit 146.80 today that means it
will not fill and this order will cancel because i selected time and force equals day so make sure
you're buying stocks the right way on weeble what other questions do you have that i didn't answer
comment down below we'll make sure we get to them until next time make sure you subscribe for
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