use limit orders for buying

My basic advice for anyone who wants to try this system, and, particularly, someone who has very little money to risk, is, set up an account with a discount broker - lots of them are big established companies - and fund it with $500. At least some of them allow you to open an account with that minimum balance. You can start with more, if you want, but, you can start with $500.

Once you have opened an account, you can trade, from your computer, over the Internet. It's a simple process of placing an order to buy, and, when the order is filled, your on line account will show that you own a stock. When you are ready to sell, you can place an order to sell, and, when the order is filled, your on line account will show that you sold the stock, no longer own it, and the proceeds are in the account as cash.

The one cardinal rule of buying is, use limit orders. If you don't know what a limit order is, or how to place a limit order, find out from your broker. When you place a limit order, to buy, you tell the market what you are willing to pay. If you have placed a limit order, the market will only fill your order at or below your limit price. This protects you from accidentally paying more than you expected. Use only limit orders when buying, if you want to be as safe as possible. Limit orders require some extra decision making, or prediction. You need to predict the available price. But the system described here, in these posts, embracing stops, unanswered, and more professional should allow you to make that decision with relative ease.

The basic available order types are limit, market, and stop. To buy, we use limit order, and only limit orders. After buying, we use stops, stop orders, to protect ourselves from catastrophic loss. To take take profits in successful trades, we can use limit orders, market order, perhaps, and there are systems that use stops. It looks like I need to write about taking profits in more detail.