First things first.
To be able to trade you will need a Trading Broker Account. You can skip this step right now, but eventually you will need a Broker account to be able to implement your trades. If you are setting up a broker account for the first time you will need a little bit of time to get it done, so you may want to skip this at this point, just keep in mind that eventually you will come back here.
Your trading broker acts as an intermediary, connecting you to the stock market. Your brokerage account is where the shares you own are held until you are ready to sell. A majority of ComhlaTech‘s members prefer Questrade or Interactive Brokers for opening their accounts.
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Let's get some terminology out of the way.
What is an ETF?
An Exchange-Traded Fund, or ETF for short, is an investment fund that lets you buy a group of individual stocks or government and corporate bonds in one purchase. ETFs are essentially like an investment basket filled with stocks or bonds.
There are 4 main “indexes” of stocks in the United States – the S&P, the Nasdaq, the DOW and the Russell. A trader cannot buy and sell the indexes as they are actually measurement tools. ETFs are used to reflect the price movements of the indexes, so that traders can buy and sell them in the open market.
At this time, the Prophetick™ Market Forecast focuses on 2 main indexes. The S&P and the Nasdaq.
The S&P 500, known as “the S&P”, is a stock market index that measures the stock performance of 500 large public companies in the United States.
The NASDAQ Composite is an index that is heavily weighted towards companies in the technology sector. The Nasdaq-100, includes 100 of the largest non-financial companies in the Nasdaq Composite.
The most commonly used ETF’s that track the performance of the S&P are: SPY, SSO and SPXL.
The most commonly used ETF’s that track the performance of the Nasdaq are: QQQ, QLD and TQQQ.
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Let's get some terminology out of the way.
A Market Order is a type of order you place with your broker that lets you buy or sell at the best current price.
This short video explains what a Market Order is and the basic steps of placing a Market Order.
Market Orders
These short videos explain how to place a market order with Questrade or Interactive Brokers.
Questrade Market Order
Interactive Brokers Market Order
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Let's get some terminology out of the way.
A limit order lets you buy or sell at a defined exact price set by you (or a better price if your broker can get it). This short video explains what a Limit Order is and the basic steps of placing a Limit Order.
Limit Orders
These short videos explain how to place a limit order with Questrade or Interactive Brokers.
Questrade Limit Orders
Interactive Brokers Limit Order
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Let's get some terminology out of the way.
Why use a Limit on Close Order?
Limit on Close orders mean that ComhlaTech members can place their trades when the market is closed, or at any time during the day. Whatever suits them.
A Limit on Close (LOC) order lets you buy or sell at a defined exact price set by you (or a better price if your broker can get it) at the moment the Market Closes.
It is an order type that can be setup at any time of day prior to when you want the order to execute or fill. That is, it can be setup from 4:01pm EST the day before up until 3:45pm EST on the day you want it to fill.
This short video explains what a Limit on close Order is and the basic steps of placing a Limit on close Order. It also explains the difference between a Limit on Close and Market on Close order, in case that's how you individual broker is setup.
Limit On Close Orders
These short videos explain how to place a limit on close order with Questrade. Interactive Brokers does not allow for LOC orders at this time', Interactive Brokers users' will need to use a market order at this time.
Questrade Limit On Close Orders
Interactive Brokers Market On Close Order
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Limit on Close Calculator
Sometimes the ‘math’ of a Limit on Close Order can feel a little confusing, so you can find an “LOC Calculator” in the tools section of the website. Simply fill in the Yellow boxes and it will help give you the guidelines that we use here at ComhlaTech when we place our own orders.
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Join the conversation
Many members of ComhlaTech are also members of the Facebook ComhlaTech community. This is a private group with only members in it. It can be a power house of useful information and there are lots of people there who are more than happy to help you if you need help, to celebrate your wins with you, and commiserate your losses too.
Join the Facebook Group!
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