Your cart is currently empty!
So, you’ve opened a brokerage account, funded it, and even decided what to invest in. Now comes the part where most beginners pause: placing the actual order.
When you go to buy your first stock or ETF, your brokerage will ask you to choose an order type. Don’t worry — it’s not as complicated as it sounds. Let’s break it down step by step so you can place your first order with confidence.
The Two Most Common Order Types
As a beginner, you’ll mainly use these two types of orders:
- Market Order → This tells your broker to buy (or sell) the stock immediately at the best available price. It’s fast, simple, and usually how first-time investors get started.
- Limit Order → This lets you set the price you’re willing to pay. The order will only go through if the stock reaches your chosen price. It gives you more control, but it might not execute right away.
Example: Imagine Apple stock is trading at $100. With a market order, you’ll get it around $100 right away. With a limit order, you might set $95 — and your order won’t execute until the stock drops to that price.
When to Use a Market Order
- You’re buying a stock or ETF you plan to hold long-term.
- You don’t care about a few cents difference in price.
- You want the purchase to go through immediately.
For most beginners, a market order is the simplest way to get started.
When to Use a Limit Order
- You’re aiming for a specific entry price.
- You don’t mind waiting until the stock hits your target.
- You want more control over the maximum you’ll pay.
Limit orders are helpful as you grow more comfortable and want more precision with your investing strategy.
Other Order Types You May See
Most beginners don’t need these right away, but here are a few you may notice:
- Stop Order → Triggers a buy or sell once the stock reaches a certain price.
- Stop-Limit Order → Combines features of stop and limit orders for more control.
- Good ‘Til Canceled (GTC) → Keeps your order active until it executes or you cancel it.
These can be useful later, but don’t worry about them on your very first trade.
Next Steps
Once you understand order types, you’re ready to place your first trade! 🎉
After that, the next step is about what happens after you buy — monitoring your portfolio and continuing to grow your wealth with consistency. That’s Step 5, which we’ll cover in the next article.
Take Action Today
The important thing isn’t choosing the “perfect” order type — it’s choosing any and getting started. The experience of placing your first trade will teach you more than hours of reading about it.
👉 Want to see how your investments could grow after your first trade? Use our interactive calculators here to project your growth and build a long-term wealth strategy.
Final Thought
Market orders or limit orders — both can be powerful tools once you understand how to use them. The key is to take that next step and place your first trade. Every investor’s journey begins with a single order.
Your wealth life is waiting — and it starts with action.