The fact is, stocks can rise or drop suddenly. The market is high-speed and many stock trading transactions are completed at the same time, which can change stock trading stock prices quickly. Unexpected losses are an unfortunate part of the stock trading process. Stock trading can be risky, but you can save yourself from unnecessary losses by knowing what you are buying and what the risk is, as well as knowing how fast the stock trading market can change.
Stock trading is a quick and easy way to trade or buy stocks, sometimes as little as five dollars per transaction. Stock trading saves time and money, but the important thing to remember is to do your homework before buying, trading or selling a stock. Know why you wish to buy or sell, and what the risk would be.
To ensure you avoid buying or selling a stock at a price you did not bargain for, the trick is to place a limit order instead of a market order. A limit order is an order to buy or sell a security at a certain price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. When you place a market order, you can't control the price at which your order will be filled. A limit order will make sure you don’t end up paying more than a specific amount you determined in advance.
At times, stock trading orders may not get to the firm in time due to Internet speeds or ISP service problems. Heavy traffic on the Internet can slow everybody down. Most stock trading firms however, offer alternates to accessing your account through touch-tone phones, fax or by calling the stock trading firm. Be sure that your transaction went through before placing another order and do the same if you have canceled a transaction. Orders can only be canceled if they have not been executed.
If you have a complaint, act immediately! By law, you only have a limited amount of time to take legal action. Follow these steps to solve your stock trading problems:
- Talk to your broker or stock trading firm and ask for an explanation. Take notes of the answers.
- If you are unhappy with the response and believe that you have been treated unfairly, ask to talk with the broker's branch manager. In the case of a stock trading firm, go directly to step number three.
- If you are still dissatisfied, write to the compliance department at the stock trading firm's main office. Explain your problem clearly, and tell the stock trading firm how you want it resolved. Ask the compliance office for a written response within 30 days.
- If you're still dissatisfied, send a letter of complaint to the National Association of Securities Dealers, your state securities administrator, or to the Office of Investor Education and Assistance at the SEC. Attach copies of the letters you've sent already to the stock trading firm.
By R. S. Wagner