How can I buy an ETF or a stock?
As part of the DPR system, subscribers are to purchase a stock/ETF via a brokerage order type called ‘Buy Stop Order’. Details for placing a Buy Stop Order are outlined below.
- Log on to your HowDoITradeStocks.com account and depending on your subscription, visit the ‘DPR Mini’ or ‘DPR Tool’ page from the website menu to obtain information on stock/ETF to be purchased.
- Determine the quantity of shares to be purchased.
See Knowledge Base entry for ‘How many shares can I buy of each ETF?’ for more information on this topic.
- In your brokerage account, start a new buy order and fill it out as follow:
|Order Field||Values (Example)||Details|
|Symbol/Stock/Instrument||QLD||This is the ETF/stock you want to purchase.
Obtain this information from DPR ‘Symbol’ column
|Quantity/Shares||15||This is the number of shares of this instrument you want to buy
Calculate and obtain this information from DPR ‘# of Shares’ column
|Price||77.15||Obtain this information from DPR ‘Buy Price’ column|
|Transaction/Sell/Buy||Buy||Select the option ‘Buy’|
|Order/Entry Type||Stop||Use ‘Stop’ and not ‘Stop Limit’|
|Duration||GTC||Duration is always GTC” (Good Till Cancelled –
this means that the order will remain open until one of two things happens. Either the order gets filled OR
we physically cancel the order)
|Preferred ECN||AUTO||Optional field - this field is available with Questrade but might not be with other brokerages.|
Complete your ‘Buy Stop Order’ using above guidelines and follow through with the prompts to place your order.
Stocks/ETFs can generally be purchased only when the stock market is open during business days, Mondays to Friday 9:30AM to 4PM EST. However, most (but not all) brokerages such as Questrade allow for orders to be placed in the after-hours when the market is closed. In these cases the order gets queued with the brokerage and is executed when the stock market opens the next business day in the morning.
An exception to this is where the stock gaps up overnight, above the stop order price. In that case the opening price the following morning is above the stop order price and the purchase will be triggered at around the then market price. Using the example above where the closing price is $45.00 and the stop order price is at 45.50, if the stock gaps up and opens at say $45.75, the order will be filled at around $45.75.
This topic and others are covered in detail at our training course Stock Market Success which is free to attend for DPR subscribers. Please contact us to obtain a promo code or you can email us at firstname.lastname@example.org. To view a list of or register for an upcoming training course, please visit the URL: http://tinyurl.com/hditsreg