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peenie

Buying Stock with Charles Schwab Questions

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What is a market order?

What is a limit order?

Say I want to buy a stock that is currently selling for $150, can I buy it for $120 by using a limit or market order? Like, can I bargain for a cheaper price??

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Just now, peenie said:

What is a market order?

What is a limit order?

Say I want to buy a stock that is currently selling for $150 can I buy it for $120 by using a limit or market order? Like, can I bargain for a cheaper price??

market order - Will fill at the current bid price e.g.

Bid - 149.98

Ask - 150

So if you put in a market order CS will purchase the stock for you at $150

 

Limit Order - Will only fill your order at the "limit" price you are bidding:

Bid - 149.98

Ask - 150

Your order will not fill until someone sells the stock at 149.98. These prices adjust by the second and if the price goes up you'll never get your order filled.

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3 minutes ago, peenie said:

What is a market order?

What is a limit order?

Say I want to buy a stock that is currently selling for $150, can I buy it for $120 by using a limit or market order? Like, can I bargain for a cheaper price??

No, you can't bargain.  A stock price is a stock price.  A market order is "buy it now."  A limit order says "If it hits a certain price then buy it."  A limit order is about as close to "bargaining" as you're gonna get. 

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It won't let me edit my post. I meant to say the Market order will fill at the current ask price (not bid)

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Wait until we have a woman as president.  The price will go down then.  

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Thank you!!

So when the guys are bidding (in the movies) with their fingers and yelling what are they doing? Aren't they bargaining??

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6 minutes ago, peenie said:

Thank you!!

So when the guys are bidding (in the movies) with their fingers and yelling what are they doing? Aren't they bargaining??

They are acting in a movie.

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4 minutes ago, peenie said:

What is a marginable security?

A stock that is purchased or sold using loaned money.

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19 minutes ago, Cdub100 said:

They are acting in a movie.

I know, but isn't that based in reality? Aren't stock brokers making bids and such? Aren't they trying to get prices and buy and sell? Isn't that how prices get high and low, based on bargaining??

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cdub100

What do you do for a living? Are you a trader or do you just trade by hobby?

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19 minutes ago, peenie said:

cdub100

What do you do for a living? Are you a trader or do you just trade by hobby?

I work for the Army and trade (with a focus on dividend stocks) as a hobby/part time job.

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1 minute ago, Cdub100 said:

I work for the Army and trade (with a focus on dividend stocks) as a hobby/part time job.

... but you did stay in a Holiday Inn Express last night.  

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2 minutes ago, Cdub100 said:

I work for the Army and trade (with a focus on dividend stocks) as a hobby/part time job.

Awesome!

Another question:

Okay, what if...I purchased stocks and I don't have enough money in my Charles Schwab account???? What should I do??? I'm in the minus now!! I already bought them. I thought the money would come straight out of my margin thingee. It didn't take the money from it. It only took from my cash part.

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23 minutes ago, peenie said:

I know, but isn't that based in reality? Aren't stock brokers making bids and such? Aren't they trying to get prices and buy and sell? Isn't that how prices get high and low, based on bargaining??

Yes, back in the day. early 80's and before most of the trading was done on the floor I think they were called shouters. the hand movements are signals to buy sell trade etc... That all but went away with computers. There are still some exchanges like NYSE (I think) that still do it, but it's a very small percentage of the market. Everthing is done by computers now..

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Just now, Patriotsfatboy1 said:

... but you did stay in a Holiday Inn Express last night.  

No I slept on the couch cause the wife has the flu. :(

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2 minutes ago, Cdub100 said:

Yes, back in the day. early 80's and before most of the trading was done on the floor I think they were called shouters. the hand movements are signals to buy sell trade etc... That all but went away with computers. There are still some exchanges like NYSE (I think) that still do it, but it's a very small percentage of the market. Everthing is done by computers now..

Ooohhhh.....duh!! I didn't know that. My god I'm so dumb.

READ UP!! I made an error with my stock purchase, please read what I did^^^

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4 minutes ago, peenie said:

Awesome!

Another question:

Okay, what if...I purchased stocks and I don't have enough money in my Charles Schwab account???? What should I do??? I'm in the minus now!! I already bought them. I thought the money would come straight out of my margin thingee. It didn't take the money from it. It only took from my cash part.

Peenie,

  Are you buying stocks, mutual funds, or ETFs?  If your financial situation is as you've described it here you probably shouldn't be buying actual stocks.  You should be investing in some type of diversified fund.

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1 minute ago, Strike said:

Peenie,

  Are you buying stocks, mutual funds, or ETFs?  If your financial situation is as you've described it here you probably shouldn't be buying actual stocks.  You should be investing in some type of diversified fund.

OMG!!! I don't know what I'm doing!! WTF is an ETF????? :cry:

I bought a some stocks! real stocks

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5 minutes ago, peenie said:

Awesome!

Another question:

Okay, what if...I purchased stocks and I don't have enough money in my Charles Schwab account???? What should I do??? I'm in the minus now!! I already bought them. I thought the money would come straight out of my margin thingee. It didn't take the money from it. It only took from my cash part.

You're probably in a margin call and should deposit more money out sell the stock

I do not recommend new investors trade in margin.

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5 minutes ago, Cdub100 said:

You're probably in a margin call and should deposit more money out sell the stock

I do not recommend new investors trade in margin.

This ^

peenie - don't invest money that you don't have set aside and can afford to lose, particularly with stocks (even blue chips).  

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5 minutes ago, peenie said:

OMG!!! I don't know what I'm doing!! WTF is an ETF????? :cry:

I bought a some stocks! real stocks

Peenie,

  There is a website called bogleheads.  You might want to read some of it.  It has great advice and a lot of beginners tutorials/articles.  Check out the links at the page below:

https://www.bogleheads.org/wiki/Getting_started

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8 minutes ago, peenie said:

OMG!!! I don't know what I'm doing!! WTF is an ETF????? :cry:

I agree with strike

An etf is like a mutual fund or index fund, but how the price is calculated is different.

I suggest you sell everything and buy the following. And just keep buying until you're rich

SWLGX 30%

SWMCX 30%

SWSSX 30%

SWAGX 10%

 

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How much is it??

Okay, sell what I've purchased and buy some of those?? (not going to sell everything, just the amount I'm over...)

Are those ETFs?

How many is good to buy?

Can I carry a negative balance until the next day??

Why didn't it take the money out of my margin??

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I don't know your financial situation, but here's what I think most new investors should do.

1. Make sure you participate in your companies retirement plan especially if they offer a match. But sure to invest enough to get that match usually 5% of your gross pay. Not only do you most companies match up to 3% but you also get tax free growth on the money

2. Open a Health Savings Account. This is like a Roth but has a ton of tax advantages. This is a bit more advanced and takes some research. If that's not for you move to 3

3. Open a Roth IRA - This is an after-tax account that grows tax-free. You can only contribute 6k per year if you're under 50.

4. Open a taxable investment account. If you are maxing out everything else most people don't make it here.

Stick to zero to low fee Index Funds. Don't look at your account every day. Just keep plugging money into it. Hear on the news the market is way down? Don't sell just keep buying. Hear on the news the market is way up? Don't sell just keep buying. You cannot time the market and you are better off dollar-cost averaging.

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3 minutes ago, peenie said:

How much is it??

Okay, sell what I've purchased and buy some of those?? (not going to sell everything, just the amount I'm over...)

Are those ETFs?

How many is good to buy?

Those are Charles Schwabe Large/mid/small cap index funds.

An index fund is a large collection of stocks centered around a theme. For example, the Large-cap index fund are very large companies worth billions. You amzn, google, ford etc... Mid caps are the mid range and small caps are the smaller companies.

When you buy 1 share of an index funds you own a small percentage of every company in that fund. This keeps you diversified 

 

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35 minutes ago, peenie said:

How much is it??

Okay, sell what I've purchased and buy some of those?? (not going to sell everything, just the amount I'm over...)

Are those ETFs?

How many is good to buy?

Can I carry a negative balance until the next day??

Why didn't it take the money out of my margin??

What "margin" are you talking about?  Let's make sure that we are all talking the same language here.  

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5 minutes ago, Patriotsfatboy1 said:

What "margin" are you talking about?  Let's make sure that we are all talking the same language here.  

You don't speak Peeniebonics?

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Listen to me! You guys, I'm about to jump out of a window. I need your help. I made a purchase of stocks and it went through but now my account is in the minus. BUT I have money in the account. I have cash and some margin money. I am not sure why it didn't take out of the margin money. Meaning, I have half cash and half money from Charles Schwab. It only took out of my money not any of the Charles Schwab money.

Ex:

$2000 = peenie cash

$2000 = Charles Schwab Margin

Peenie Stock purchase = $2500

Now my account is -500

I thought instead my account balance would be +1500

Why didn't any money from the Margin come out??

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Just now, peenie said:

Listen to me! You guys, I'm about to jump out of a window. I need your help. I made a purchase of stocks and it went through but now my account is in the minus. BUT I have money in the account. I have cash and some margin money. I am not sure why it didn't take out of the margin money. Meaning, I have half cash and half money from Charles Schwab. It only took out of my money not any of the Charles Schwab money.

Ex:

$2000 = peenie cash

$2000 = Charles Schwab Margin

Peenie Stock purchase = $2500

Now my account is -500

I thought instead my account balance would be +1500

Why didn't any money from the Margin come out??

I don't know.  But I bet you can call them and have them sort it out.   It sounds like you did this all online but I'm pretty sure they actually still take phone calls.

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1 minute ago, Strike said:

I don't know.  But I bet you can call them and have them sort it out.   It sounds like you did this all online but I'm pretty sure they actually still take phone calls.

Listen, cracka! I already tolds you that I should have 1500.  Wheas my moneys?!!  :mad:

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4 minutes ago, peen¡e said:

Listen, cracka! I already tolds you that I should have 1500.  Wheas my moneys?!!  :mad:

Elizabeth Warren is holding on to it until you elect her President.  Then, it's money for EVERYBODY!!!!

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Omg....don't be mean to me. I am really stressed right now.

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27 minutes ago, peenie said:

Listen to me! You guys, I'm about to jump out of a window. I need your help. I made a purchase of stocks and it went through but now my account is in the minus. BUT I have money in the account. I have cash and some margin money. I am not sure why it didn't take out of the margin money. Meaning, I have half cash and half money from Charles Schwab. It only took out of my money not any of the Charles Schwab money.

Ex:

$2000 = peenie cash

$2000 = Charles Schwab Margin

Peenie Stock purchase = $2500

Now my account is -500

I thought instead my account balance would be +1500

Why didn't any money from the Margin come out??

Well yeah your account should be -500. You borrowed $500 to buy whatever you bought.

ETA - do not trade on margin. That's really stupid. Close down the margin portion of your account

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50 minutes ago, Cdub100 said:

Well yeah your account should be -500. You borrowed $500 to buy whatever you bought.

ETA - do not trade on margin. That's really stupid. Close down the margin portion of your account

peenie - I can second this.  Never buy on margin.  

I usually do a limit order based on a price that I feel comfortable with and leave it open for 30 or 60 days.  Try not to lose patience and, unless you are going to become a day-trader, buy with long-term in mind.  If I have a real dog, I might unload them come tax time to balance out any realized gains, but I usually keep things a while (more than a couple of years).  When I haven't (like when I sold ROKU after making 100% profit), it has burned me.  

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Omg, a relative told me to take out the margin thing! He was explaining that I should put in money and whatever I put in Schwab will give me the same amount and I can use it to trade. Perhaps I don't understand the details.

I appreciate you trying to help me.

A hex on those being mean to me at this time!!

 

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