FB Ads Tracking

Upcoming Free Training Event: How to Kill Your Stress, Fear and Frustration as a Trader.

How To Sell A Stock

See the entire Make-A-Wish adventure HERE.

How to Buy a Stock: CLICK HERE

If you are new to trading the stock market and want to learn how to sell a stock you own, let’s talk about it. Learning how to buy a stock is very important; however, it is also just as important to understand what options you have when decided to sell the stock you own.

Grand Theft Auto (GTA) and the Stock Market Trading 101: How a Stock Can Lose You Money. Trading 101: Am I Making or Losing Money on this Stock? How to Ask About an Online Broker Trading 101: Who is Your “Source”? The Math of “Shorting”

INSTANT ACCESS: 5 TRADING TOOLS I USE

Download this free report revealing the 5 tools I use everyday to find the stocks I am going to trade.
comments powered by Disqus
Transcript:

We have a special video today,from the title yeah we're gonna talk abouthow you sell a stock.But we have a guest here Sam.Sam from Illinois, Sam used to live in South Koreabut now he's here.And he's hanging out, part of Make a Wish Foundation.And really bright guy.He's been trough a lot.But he's somebody that excuse is not in his dictionary.And it's been great getting to know him,but he's watched several of my videosand I thought let's get him a part of oneso Sam is gonna help me and we're gonnateach people how to sale a stock.You ready Sam?Yeah, I'm totally ready.He doesn't really know.I really haven't.A lot of this is unscripted so he's gonna have to thinkon his feet but we've discovered thathe's pretty quick on his feet.So I'm pretty confident for it.So Sam let's just set up the equation here.Alright.Write down, let's just think of a companythat you would want to own some stock in or whatever.Let's go with Tesla first.Okay Tesla.Yeah.And how many, what's the price of Tesla right now?It's right around $330ish at this point.Alright, $330.And hypothetically how many shares do you own of Tesla?I don't own anything.Hypothetically.Hypothetically I'll, if I have a lot of moneyI'll own 100 shares.100 shares, okay.So this is what we're gonna go by.We're gonna look at somebody Sam, who owns TeslaAha.The current price of Tesla is $330.And he owns 100 shares of it.So now let's say that okay, he's boughtand I should note that if you don't know how to buystock we'll put a link down below that willlink to the how to buy stock video,because that'll be the first place you want to start right?Before you can sell somethingyou have own it and buy it.So I have done a video on thatbut now let's focus on selling.So here is the premise,I'll add this up here for you.So this is Sam's situation right here.Again he has Tesla.The current price of Tesla is $330 and he owns 100 shares.Now we also have to figure out here Sampart of what price would you want to sell Tesla for?If you saw it go up to a certain pricewhat would be ideal for you?Why don't you write it over here.Let's go with $370 since that's the resistance level.He's a natural.And I'm a little mad cause over here he was likeI don't know I'm kind of nervous in front of the camera.Look at that.Now he's throwing up.He's a natural.Alright ah.So that's where you want to sell it.Aha.Now the other thing we have to factor inand we won't go too far to this,but remember from a risk management perspective,you also need to factor in where you would wantto sell that if maybe you're wrongand the price goes down.So let's say, Sam that you're wrong.You shouldn't of bought Tesla at $330,what level would you want to sell it atfrom a stock loss perspective?From a risk management perspective.It goes down to what level?Why don't you write it right over there.Let's go with if it goes down anything of below $300I'll just stop there.Okay.So we're gonna put sell herebut this will be more so in the risk perspective.And we'll get to that in a little bit.So that is the criteria here.Sam's put together a broad trade plan,he wants to sell at $300or it's $370 excuse mewhere he wants to sell at $300 if it goes down against you.So, let's say that the first thing that occurs.Is it okay if I switch up the markers here alright.It actually goes up and Sam was right, awesome.It goes up and hits$370.Now, what Sam's gonna wanna do isfirsthe's gotta ask himself how many?A lot of people think that sell means when you sellall 100 shares.Now, you can do a partial sale.You can do a portion.So Sam how many of the 100 sharesdo you want to sell at $370?Let's go with 50.50 alright you can write that right there 50.50 shares.50 shares.Now within your broker,everybody is a little different as far how it works.But the terminology is gonna basically be the same,but he is now gonna do a partial sell.So within his broker, he is going to enter inlike I said, what they call it I don't know.But there's gonna be some sort of quantity.So he's going to tell his broker,and enter then on it.He's not calling up his broker.This is all online.But, write in 50 right there Sam.Cause that's how many you're gonna tell your broker to sell.Yeah.So that is the very first step in how to sell a stock isyou have to determine how many of those shares you actuallywant to sell.Again, you don't have to sell all 100.You can sell, Sam could've said one.Sam could've said 99.But that's what you have do.So now you're, he's gotta figure out.What we're gonna call the now or but.I got a little ahead of myself.what do I mean by now or but.Well there is two types of orders out there.There is, let's go back to the blue.Now would be what is calledyou know what that's called?The market order?Yeah.Look at this kid.The market order.Absolutely.The market order means I want to sell nowand I don't care about the price.I just want to sell right now.That's what a market order is.Now, a but order,so what would a but order be?It would be like I want to sell itat this exact point, so that would be a limit order.Limit order there we go.So the but would be what your broker is probably gonnacall a limit order.Sam people are gonna think we had all this staged.No, we didn't stage this at all.I did not know you knew these terms.So again,a but means yes I want sell but,I'm only gonna sell for a certain limit.So in this case, what kind of order do you want to do?I'm guessing a limit right?Yeah, a limit.You wanna sell but, you only want to sell for $370,is that accurate?Yup.So that's what he would enter into his broker.He would own the 100 shares.He only wants to sell 50 of them.But, he's only willing to sell those for $370.So he would enter in for you,if you want some lingo out therehe'd order in a sell order,or excuse me, a sell limit order for 50 shares at $370.Again, I'll say that again.A sell limit order for 50 shares at $370.And now Sam was just like you know what,I want out, I want out, I just want out.What order would you pick in that situation?I'll of course choose the market order.The market order, there we go.Cause he just wants out at any point in time.He wants outnow.So that's how if things are going in his favor.It's going up.You would want a limit order at $370.Now, we're all human.We all make mistakes.If you think you're going to win every single tradethen I have some oceanfront property in UtahI will sell you.Would you buy some oceanfront property?Oh yeah of course.There we go, alright.I would love to.Yeah, yeah.So, let's say that Sam is actually wrong.And in this situationthe current price as we've established is $330.But it starts to go downit being the price goes down and down and down.And now he needs to enter in what we would calla stop loss order.What is a stop loss order?Well, it's exactly what it sounds like.As I've dictated here, $330and the price is going down, down, down.What do you think a stop loss order is gonna do?It's gonna actually sell at $300 which I'veset it out for the limit order.He's way too far ahead.This is.It's gonna stop the loss,but yes, you're absolutely correct.What Sam said, he's stealing all my thunder here, alright.Yeah, it's gonna stop the loss.Because obviously you, risk management,that's part of trading.So there is two types of stop loss orders so.Let me just think, yeah, we're gonna stop the loss.But once again it goes back towhat we've already talked about.There is a market stop loss,there is a limit stop loss.Now do you know which one of those would be more risky?Actually the blue bar kit,depending on the situationI think market would be more riskier.Alright, finally got him.No, the limit is gonna be much riskier.So, good.This will be a good learning.So let's say that Sam wants to sell at $300.As he said out here, right?If it goes against him and he wants to get out, $300.But he says you know what?I want to sell at $300,but I'm more than willing to sell for $300.With the way the market operates from a liquidity,from a computer algorithm perspective,there is a chance that the price could dropbelow $300 and not get us through 50 shares.Because the market moves so fast.But, because he chose the limithis broker is not gonna sell.So it could go down to $290.He's not gonna sell becauseSam said he wants a limit order of $300.It could go down $250.His broker is not gonna sell becausewell Sam said, no, no, no.Limit order.$300.So from a risk perspective,I'm not gonna say in all cases,but in many cases,the way you want to approach it is a market orderbecause if you just want out,then get out.So sure maybe that means Sam sells at $299instead of $300, but would you rather havethat than get stuck in a trade?No.Yeah, yeah.It would be much better to just get out for.So, that's why, again I'm not gonna say that you usea stop loss limit order never,but I'm struggling right now to think of a situationwhere you'd want to use a limit for a stop lossand I think the default setting in most brokersbut certainly check is going to bea market stop loss.Meaning if it hits $300,you want out now.And if that means you don't get out 'til $299then so be it.At least you got out.And that's how you go about selling a stock.You gotta just figure out the situationand once you get in,how many do you want to sell.If you want to sell right now.That is again, the market order.If you want to sell but,you only want to sell for a certain price,a limited price,then that's where a limit order would come into play.And that's how you would enter in everything here.I think we covered it Sam.Did we get it.Do you need to add anything?Actually, I think I have to ask something.What about, what if in case there is a pattern day tradethat place in place whereif you have capital less thank 25k.Yeah.Wouldn't it be better to do a limit in that case?If there is a pattern day trade rule?You mean in the sense if you don't have any moreday trades left?Yeah.Well, okay.That's a good question.That's a whole another video.But that's a good question.We're gonna answer it.If you have used up,so you're saying if you'd used up all your day trades?Yeah, yeah.So if you've used up all your day tradesand then you enter into another tradedon't do that.Because for what Sam just brought about.You can't get out.If you do get out you violatethe pattern day trading rule,which is not good.So don't play the game of,okay I've done my three day trades.Now I'm gonna hop in once more.Because if you literally can't get out without violatingthe pattern day trading rule,that's a very risky situation does that make sense?Yeah.So, like we talked about earlierit's one of those no trade is the best tradein that situation.Hmm yup.So good question,but yeah you would not want to get outor you would not want to get into a tradeif you literally have no way to sell other thanviolating the pattern day trading rule,and then your account gets frozen and it's,thanks government, thanks for the pattern day trading rule.But, Sam thanks for helping me out.No problem.I think this is gonna help out a lot of people.I'm think, making sure we didn'tskip out on anything but, yeah.You gotta first dictate how many shares you want to sell.Then you gotta dictate, do you want to sell them right nowfor a market or I want to sell but for a limit,and then if it does go downyou want to make sure that you're suing a stop loss,of the market sense or else you risk getting stockin the trade.Because if the price flushes down through your pricewell you told your broker you only would want to sellfor $300, but if it goes through $300 and you're not ableto get out with the way the market worksthen you are at riskof getting out a whole lot lower than whatthe $300 or in our situation $299.So Sam thanks.Yup.If you have any questions,leave them down below.And do you have your YouTube channel out yet?No, not yet.Just not yet.Alight well, if you get it out soonif you get it out soon yeah,we'll put it,it will be in the description.Aha.See he's very assertive I like that.But we'll put Sam's YouTube link down in the chanit's gonna be aboutIt's gonna be about engineering or it'sgonna be about personal financing in general.That's what I'm planning to do for my YouTube Channel.There we go.And also, if you want to see the blogof more of the just Make a Wish Thing in generalwe'll put that link down below so you can get toknow Sam better and yeah check that stuff out.But Sam thanks again and well that's how you sell a stock.If you are out there trading alone currentlyand maybe are in the market looking for a community tojoin, to assist you, in your tradingor to just help you, you know, give you anotherset of eyeballs,then I do have a private trading communitywhere you can trade alongside meand other experienced traders.So, what you see popping up on the screenright now is both an information link,so if you click on the inner circle onethat is going to take you to the pagewhere I explain all the detailsof what exactly come with a community,both the chat room and the newsletter.And then the other image that has popped up isa behind the scenes tour where you can see exactlywhat is going to be contained within the community.I take you through like I said a behind the scenes tourof everything and that way you'll knowprecisely what you were getting when you joined.So, definitely check that stuff outif you are interested and thinking aboutwanting to join a communityand let me know if you have any questions.

Let Me Help You Get Started

arrow mwc logo comment google-plus facebook instagram twitter youtube3 linkedin2 email itunes feed2 soundcloud phone stitcher play3 envelop bubble bubbles4 wrench bell notification stop search menu question-circle books hammer binoculars pin icon-tunein chevron-right check in calendar number1 number2 number3 number4 number5 mobile2
close ×

FREE TRAINING EVENT!

How to Kill Your Stress, Fear, and Frustration as a Trader