Placing your first stock order can feel intimidating — there are more options than you'd expect. This is a plain-English walkthrough that works for any standard brokerage: Fidelity, Schwab, TD Ameritrade, Robinhood, or others.
Order types: what you need to know
When you go to buy a stock, you'll see a dropdown asking for an "order type." The two you need to know are:
Market order: Buys at whatever the current price is. Simple, but you might pay slightly more than expected if the stock is moving quickly.
Limit order: Buys only at a price you specify or better. Recommended for following picks — it ensures you don't pay significantly more than the entry price listed.
Step-by-step: placing a limit buy order
- Search for the ticker in your brokerage app
- Tap "Trade" or "Buy"
- Select "Order Type: Limit"
- Enter the quantity (number of shares) or the dollar amount (if your broker offers fractional shares)
- Set the limit price to the entry price in the pick, or up to 0.5% above it for flexibility
- Set the time-in-force to "Day" (the order expires at market close if not filled)
- Review and submit
How many shares should you buy?
Divide your planned dollar amount by the stock price to get the number of shares. Example: if you want to invest $500 and the stock is at $125, buy 4 shares ($500 ÷ $125 = 4). Many brokers now offer fractional shares, which lets you invest an exact dollar amount without worrying about share count.
What if the stock opens above my entry price?
If the stock opens significantly above the listed entry price, your limit order won't fill — and that's correct behavior. Do not chase the price higher by raising your limit. It's fine to skip a trade if the entry isn't available at the expected price.