Module 4 of 6
Buying & Selling Stocks
Learn how to place trades, what market orders are, and how your portfolio works.
How to Buy a Stock
Buying a stock is straightforward: you choose a stock, decide how many shares you want, and place an order. In STONX, you search for a stock and click Buy to get started.
Market Orders
A market order is the simplest type ā you buy or sell at the current market price. It executes immediately at the best available price. This is the most common order type for beginners.
An order to buy or sell a stock immediately at the current best available price. Fast and simple, but you might not get the exact price you saw.
Understanding Your Portfolio
Your portfolio is the collection of all investments you hold. In a STONX game, you start with virtual cash (like $100,000) and build your portfolio by buying stocks.
Key portfolio concepts:
ā¢Cash Balance ā Money available to buy stocks ā¢Positions ā Stocks you currently own ā¢Portfolio Value ā Cash + value of all your stock positions ā¢P&L (Profit & Loss) ā How much you have gained or lost overall
A stock holding in your portfolio. Your position in AAPL is the number of Apple shares you own and their value.
When to Sell
You sell a stock when you want to lock in profits, cut losses, or free up cash for other opportunities. There is no single right time to sell ā it depends on your strategy and goals.
A common beginner mistake is selling winners too early and holding losers too long. Set your goals before you trade, so emotions do not drive your decisions.
The Spread
The spread is the difference between the bid (what buyers will pay) and the ask (what sellers want). Highly traded stocks have tiny spreads. Less popular stocks may have larger spreads, meaning you could lose a small amount just from entering and exiting.
In STONX, you will see your positions, cash balance, and P&L update in real time as prices move throughout the day. Try making your first trade to see it in action!
Sign in to take the quiz and track your progress!