First Trade Ever

As most of you know I opened a broker account with Scottrade last week and that meant that I was ready to trade online. After transferring $500 to my account  I was ready for that Visa IPO. I didn’t sleep Tuesday night at all to be ready early the next morning because I knew those Visa shares were going to jump in price. As soon as the market open the stock reached $65 I think and for a second I thought it would go higher so I tried to buy some shares but for some reason I couldn’t, I tried about 3 times and still I could not buy those Visa shares. I then quickly did some reading about the order types. After that I quickly put in a “stop” order for 8 shares at $65. By then the price had gone down and I was wondering why my order had not gone through, some more reading and then I found out this, “Stop orders are an order to buy or sell a security when its price surpasses a particular point, limiting the investor’s loss or locking in his or her profit”, since the price had gone down the order was not triggered. Some more reading and by then the price was about $61 dollars I think so I put in another order, this time instead of a “Stop” order I went with a ” Limit” order which means, “orders will execute only if the market reaches the specified price or lower”. I placed my order for 8 shares at $60 dollars, the price kept going down and when it reached $60 the order was triggered and I managed to grab 8 shares at $59.50. I ended up losing money that day and that is ok because I am going to wait and see what happens. It was quite a day to say the least but I was happy because I got what I wanted and I wanted Visa and now I own a little piece of that company and hope that you too managed to get some as well.

Setting up an account with Scottrade, easy. Transferring money into my new account, easier. Owning 8 shares of Visa………………….priceless, wink, wink.