Hey guys, welcome to part two of the penny stock trading jargon. In this series, I'm going to be covering basic penny stock trading terminology. And pretty much the vocabulary that you'll be hearing in my videos on forums and chat rooms. Basically, anyone who talks about penny stocks or if you're trying to get into penny stocks, learning, these words are very important for your education. And you'll be seeing these words and these terms all over the place. So I'll be covering them slowly with you guys.

This is the second part. So if our you know, make sure you've watched part one before you're watching this, obviously, so you know, let's just get right into it. In this episode, I'm going to be covering market orders, limit orders, stop orders, day trading and pre market and after hours. So again, this is for, you know, it's mainly targeted for people that are new to the stock market and don't exactly know what these terms mean. But you know, sometimes even veterans or intermediate traders, you know, you might want to just, you know, rehash your knowledge or, you know, go over it again. So I'm just going to cover it there just a basic episode to kind of go over these terms.

So let's get started. The first thing that you'll be hearing a lot is market orders. Okay. Now, as I discussed in the previous section, and let me just do a recap of it an order is what you put in when you try to buy or sell stock. So, think of it again, as like a McDonald's or a fast food restaurant. When you put in your order when you want to buy or when you want to sell.

It doesn't happen right away. When you go to a restaurant and you place an order. You don't get the food right away. There's a little wait. And so that's why it's called an order. So a market order is that is you're trying to buy or sell the share, or the stock at a certain price that's already dictated by the market, which means that technically You don't control the price that you'll get the stock app.

Now, if that sounds scary to you, it should, because market orders are very dangerous, in that you don't have any control over what price you're going to get your shares at. So, the reason I never recommend people using market orders is for that very reason. Alright, for those of you who have started trading or about to get into trading, one thing that you should know is that there's a lot of volatility in the market, especially the stocks that I talked about, and the stocks that we profit off of their prices are changing at a rapid pace, and that's why we trade them because we try to make money off of that price change. However, you have to be sure that you don't expose yourself into losing money or messing up your order by placing a market order because what can happen is say you place a market order when the share is at, say $1.

The issue though is that for those who who haven't looked at level two, which, you know, sorry to get ahead of myself. But level two is something that I'll cover later on. If for those of you who understand the market, or just I'm telling you in general, the issue is that the share even though it might be priced at $1, it's bought, it's being bought and sold at various prices, it's being bought and sold that maybe 98 cents, or 99 cents, or $1, one cent or even, it can even be more rapid or more volatile, it can even be like, you know, at five, you know, five cents above or lower, even 10 cents above or lower. Alright. And so the issue with market orders is that you don't know what price you'll end up getting your order filter. So if you're buying the stock and say you want to buy it at $1.

If you put in a market order, you might end up getting the share at $1 and five cents, or $1 and 10 cents. All right, it's just going to try to give you a fast, complete order. It's going to try to fulfill your order very quickly. And that becomes dangerous because then you Don't have any control, right. And the way you limit that, or the way you control that is through limit orders pretty much 99% of the time, you know, or for anyone who's new or even intermediate, or who hasn't been trading for years, you want to use limit orders, okay? limit orders allow you to specify the exact price that you're going to be buying or selling the shares at.

That's exactly what you need, you need to make sure that you put the exact amount that you want to buy or sell the share. That way, you don't have to worry about getting screwed over or not getting filled. Now one thing you have to keep in mind is that that may take a little bit longer, because you have to wait for someone to want to buy or sell the stock at the price that you're selling it or buying it at, you know, so if you want to buy a stock at $1 and you place a limit order, you have to wait for someone to be willing to sell that share or that amount of shares for $1. But in general, if you want to trade through my strategy or in general, I would recommend even if you don't utilize my strategy for penny stock trading and even real market trading equities, futures options, anything you do, make sure you do limit orders, okay?

You need to have some sort of control over the price that you buy or sell the share. Okay, now I'm going to be discussing stop orders. All right, now as you can see, there's two different kinds. There's a stop order and a stop limit order. Okay? Now, a stop order is used for people to hedge their risk or for people hedge, in essence means to limit their risk to decrease the amount of risk, okay?

Which is very important because penny stocks in general, you know, they're risky. If you don't know what you're doing, they're risky, even if you do know what you're doing. They're risky and you need to make sure that you have the proper limitation, not limitations, but the proper rules in place and the proper discipline and in general, the proper precautions so that you don't end up losing money. Okay? You want to obviously make as much profit as possible. So, the thing about a stop order is that it allows, let me explain first what a stop order is.

Alright? A stop order is a price that you put that when the stock price, it's dictated by you, you can make it any amount. When the stock price hits that amount that you defined, hits that price that you defined, then the certain action will happen. Okay, so let me let me give you guys an example to clarify. Alright, say you buy a stock, you buy stock, ABC for $1. All right, and now you want to sell it, okay?

You want to sell it obviously for a profit, maybe $1, five, whatever. But you also want to make sure that you protect yourself so that if the stock goes down, you don't lose too much money. So you place a stop order, okay? So you will place a stop order that okay, at 95 cents, I'm going to sell it I'm going to cut my losses. I'm going to stuck. Alright, so that's a way that you can limit your risk, okay?

Because now you have a price target that you want to sell the share out to make money. All right, you bought at $1, you want to sell at $1, five cents, $1 10 cents, whatever. But you're also creating a, you know, a hedge or you're protecting yourself from too much losses, okay, you know, you're placing the stop order so that it when it hits 95 cents, you'll sell and you'll be protected. Okay? So when you place that stop order at 95 cents, you're placing a stop order for a sell at 95 cents. So what's going to happen is once you input that order, as soon as the stock price hits 95 cents, it'll sell your stock.

That way you'll be protecting, you know, you won't lose too much money. All right, I tell you to some time or a my strategy I teach that you guys should be using mental stop orders. Now let me tell you why. And this goes back to exactly what I was talking about a few minutes ago. All right. When you put in that stock order, right, and when the stock price hits the amount that you defined, the issue though is that again, it automatically executes a market order.

So in the previous example, when you're trying to create a stop order 95 cents, okay? And the stock price hits 95 cents, and it executes a sell order. Again, the issue is that it's executing a sell market order. And the problem with that is that you even though you want to sell a 95 cents, as soon as you put it as a market order, you don't have any control as at how much you're going to sell it for. It's possible and I've seen cases myself and heard of cases of people getting their mark their shares sold at ridiculously different prices from what they wanted because of a stop order. So you might have put the stop order at 95 cents.

And what happens is your shares end up getting sold at 80 cents or 75 cents. Alright, so that's a huge loss. That kind of All right. Now the way you protect yourself against that is by using the next item on the list, which is called stop limit orders. And again, what that allows you to do is, it's the same thing, but it allows you to control the price that you're going to sell your shares at. So if I place a stop limit order at 95 cents, then automatically as soon as the stock price hits 95 cents, the order will be executed for a sell limit order of 95 cents.

So all the shares that I have that I want to sell will only be sold at 95 cents. All right, so sorry, I feel like I feel like that might have been a little confusing, but it makes sense. If you I'm sure if you listen to this at least just one more time. It'll all make sense too. So definitely, you know, repeat this if you want, and you'll get exactly what I'm talking about. And it's very important, okay, and don't you know, this is actually extremely helpful especially if For those of you who are new to the stock market, you know, the information that I just provided you guys, that's something that even experienced traders who've been trading for months and even years, sometimes don't know or sometimes don't, you know, they don't implement and that causes them to lose a lot of money.

And that's essentially why they're not profitable. So, you know, definitely make sure you understood what I just went over in the last, you know, 510 minutes. All right now for the last two terms I'm going to be covering is day trading and pre market after hours All right. Day Trading is essentially the concept of buying and selling stocks in the same day. Okay, day trader, day trading can refer to a profession, but in terms of what your brokerage account or your brokerage platform refers to it as is it's when you buy or sell a stock in the same day. Alright, day trading, you know, in the same day you trade pretty much buy and sell.

Now, this is different from Usually trading because usually people invest in stocks. And I have a whole, you know, I have a whole video about, you know the difference between trading and investing. I teach trading, we do penny stock trading, we're not investing in these companies because for the most part, they're not good investments, but you can make money with trading them day trading them within the same day, you know, within a few minutes or within a few hours, and that's a strategy. So I just wanted to cover that. And finally, something very important and a little confusing topic that a lot of people don't understand is pre market and after hours, okay, most stock markets you know, the OTC bebe Pink Sheets, New York Stock Exchange, a max all of those stock markets. They trade from between 930 and four from Monday through Friday, okay.

They were actually closed on Friday because of Good Friday. I'm making this video right after the weekend after Good Friday. But you know, so they have some holidays but for the most part, they're open Monday through Friday 9:30am ESP to 4pm PST. Okay. So, however the thing is they, the stock market can also and the stocks can also be traded outside of those hours. And that's what's referred to as pre market and after hours.

All right. So there is a possibility that your broker, you know, depending on who it is, if it's TD Ameritrade share builder, a trade they might allow you to buy or sell stocks outside of normal trading hours, and that's what's called pre market, which is usually from about eight o'clock am onwards. And then there's after hours, which is usually from like 415 or 430, onwards to about 8pm PST. But of course, you have to go and look and to talk to your broker, you know, get them on the phone or go through their website and they'll tell you, the, you know, their pre market or there after hours His time range. Okay, I have a whole bunch of videos about trading in pre market and after hours. So you can definitely check that on the VIP service and all that but I just wanted to again, I just wanted to expose you guys to these terms because it's terms that you'll hear a lot especially if you're getting into penny stock trading.

And you know, there's I'm going to make a whole bunch more you know, this is probably going to be a decently long series because there's a lot of terms that may or might not come up on these terms all will come up on a daily basis if you're getting into penny stock trading, you know, rewatch this episode as many times as you want, it's these terms are essential. Alright, so you know, I hope this helps. If you want to learn more about penny stock trading, definitely go to www and Penny stock comm I'm going to be creating more videos just like this and I have a whole library of penny stock trading educational videos on how to trade Penny stocks and how to profit with them. So definitely check that out and if you want to contact me or if you have any questions, feel free to email me at admin at in penny stock calm.

See you guys later