6. Make your first purchase

Now that all of your planning is over, it is time to dive in and actually buy some stock. If you have conducted a thorough analysis and developed a good plan that fits within your investing strategy, you should feel quite comfortable taking this step.

You have two basic order-type choices when you want to buy a stock—you can use a market order, or you can use a limit order. If the stock you are looking at buying is a relatively fast moving stock and you are only concerned with getting into the trade, not trying to save a penny or two on your entry price, you should consider using a market order. If the stock you are looking at buying is a relatively slow moving stock and you are willing to take a gamble on getting a better price on your entry price, you may want to consider using a limit order.

[To learn more about these order types, check out the videos and articles on Market Orders and Limit Orders.]

Looking at our ADM example, we are going to use market orders. Here's why. When we looked at our initial entry point, we defined a price range that we felt comfortable buying within. We didn't limit ourselves to a specific price. Since we determined that we would be comfortable buying anywhere within that range, we should use a market order to ensure we get into the trade—even if we pay an extra few cents per share.

This special report continues on the next page...

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3.25 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."