You've decided which stock you wish to buy or invest in, now it's time to choose the account where you’ll place the trade and ensure there is sufficient cash to do so.
Once that is done, you can open an order entry ticket from your direct investing account.
This can be accomplished in 4 simple steps.
Select the stock name or symbol and desired trade (i.e., ‘Buy’).
Enter the quantity you wish to purchase.
Select your order type. The two most common order types are Market Order and Limit Order.
A Market Order means you want to purchase the stock right away at the current market price. Caution is required when placing market orders as some securities do not trade heavily and placing a market order could result in paying more than you intended.
A Limit Order lets you specify the maximum price you are willing to pay on a buy order, and the lowest price you are willing to accept on a sell order. In other words, for a buy order you won’t purchase the stock unless it trades at or below your limit price. You can use the current market price in helping you establish your desired limit price.
Place your trade (i.e., Buy Order) which means you confirm to buy.
That’s it, you now know the basic steps involved in how to buy stocks.
So, what next? Managing your portfolio.