we have a special video today from the
title yeah we're gonna talk about how
you sell a stock but we have a guest
here Sam Sam from Illinois Sam used to
live in South Korea but now he's here
and he's hanging out part of make-a-wish
Foundation and really bright guy he's
been through a lot but he's somebody
that excuse is not as in in his
dictionary and I yeah it's been great
getting to know him but he's uh he's
watched several of my videos and I
thought let's get him a part of one so
uh Sam's gonna help me and we're gonna
teach people how to sell a stock you
already Sam yeah I'm totally right he
doesn't really know I I really haven't
this is a lot of this is unscripted so
he's gonna have to think on his feet but
we've discovered that he's pretty quick
on his feet so I'm pretty confident for
so Sam let's just set up the equation
here write down let's just think of a
company that you would want to own some
stock in or whatever oh let's go it
Tesla first okay Tesla yeah and how many
what's the price of Tesla right now it's
right around three hundred thirty ish
thump at our point yeah 3:30 and
hypothetically how many shares you own
of Tesla I don't know hypothetically
hypothetically all if I have a lot of
money okay so this is what we're gonna
go lie we're gonna look at somebody Sam
who owns Tesla huh the current price of
Tesla's 330 and he owns 100 shares of it
so now let's say that okay he's bought
but I should note that if you don't know
how to buy a stock output we'll put a
link down below that will link to the
hata buy stock video because that would
be the first place you want to start
right before you can sell something you
have to own it and buy it so I have done
a video on that but I was focused on
selling so here's the premise I'll add
this up here for you so this is Sam's
situation right now
again he has Tesla the current price of
Tesla's 330 and he owns 100 shares no we
also have to figure out here Sam part of
what price would you want to sell Tesla
for if you saw it go up to a certain
price what would be ideal for you why do
you write it over here
well let's go wait 370 since dust
resistance level okay natural and I'm a
little mad cuz earlier he was like I
don't know I'm kind of nervous in front
of the camera look at that now he's
throwing it is it natural alright um so
that's where you want to sell it huh
now the other thing we have to factor in
and we won't go too far to this but
remember from a risk management
perspective you also need a factor in
where you would want to sell at if maybe
you're wrong and the price goes down so
let's say Sam that you're wrong you
shouldn't have bought Tesla at 3:30 what
level would you want to sell that from a
stoploss perspective from a risk
management perspective it goes down to
what level how do you write it right
let's see well if it goes down anything
up below 300 I'll just saw okay yeah so
we're gonna put sell hair but this will
be more so in the risk perspective and
we'll get to that in a little bit so
that is the criteria here we've Samms
put together a broad trade plan he wants
to sell at 300 and are you wants there's
370 excuse me where he wants to sell 300
if it goes down against you so let's say
that the first thing that occurs is it
okay if I switch I'll get markers there
aren't is it actually goes up and Sam
was right awesome it goes up and hits
370 now what Sam's gonna want to do is
first he's not asked himself how many a
lot of people think that sell means will
you sell all 100 shares no you can do a
partial sell you can do a portion so Sam
how many of the hundred shares you want
to sell at 370 let's go eight fifty
fifty all right you can write that right
there 50 50 50 shares now within your
broker everybody's a little different
and as far as how it works but the
terminology is gonna basically be the
the same but he is now gonna do a
partial partial sell so within his
broker he is going in to enter in like I
said what they call it I don't know but
there's gonna be some sort of quantity
so he's gonna tell his broker and enter
then you know on it he's not calling up
his broker here this is all online but
writing a 50 right there Sam cuz that's
how many you're gonna tell your broker
to sell yeah so that is a very first
step in how to sell a stock is well you
have to determine how many all those
shares you
I actually want to sell again you don't
have to sell all 100 you can sell Sam
coulda said one Sam could have said 99
but that's what you have to do so now
you're he's got to figure out what we're
gonna call it an hour but no I got a got
a little head of myself what do I mean
by an hour but well there's two types of
orders out there there is let's go back
now would be what is called do you know
what that's called a market yeah
the market order absolutely the market
order means I want to sell now and I
don't care about the price I just want
to sell right now that's what a market
order is now a but order what was the
what a blood order be it'll be like oh I
want to sell it at this exact point so
there'll be a limit limit oh there we go
so the butt would be what your broker is
probably gonna call a limit order Sam
people were gonna think we had all this
stage no I did not know that all yeah I
did not know you knew these terms so
again a butt means yes I want to sell
but I'm only willing to sell for a
certain limit so in this case what what
kind of order you wanted to do I'm
guessing a limit right because you want
to sell or you want to sell but you only
want to sell for 370 is that accurate
yeah okay so that's what he would enter
into his broker he would own the hundred
shares he only wants to sell 50 of them
but he's only willing to sell those for
370 so he would enter in for you if you
want some lingo out there
he'd order in a sell order or excuse me
a sell limit order for 50 shares at 370
I can't say that again a sell limit
order for 50 shares at 370 now if Sam
was just like you know what I want out I
want out I want
I just went out what order would you
pick in that cuz it's well worth America
the market order there we go because he
just wants out at any point in time he
wants out now so that's how if things
are going in his favor you know it's
going up you would want a limit order at
3:00
now we're all human we all make mistakes
if you think you're gonna win every
single trade then I have some oceanfront
property in Utah I will sell you you
want would you buy some ocean eliyahu
yeah there we go alright okay yeah yeah
so let's say that Sam's actually wrong
and in this situation the current price
as we've established is 330 but it
starts to go down it being the price
goes down and down and down and now he
needs to enter in what we would call a
stop loss order what does a stop loss
order well it's exactly what it sounds
like
as I've dictated here 330 and the price
is going down down down what do you
think a stop loss order is gonna do it's
gonna let you sell at $300 which I set
it up what you have in there okay he's
way too far into this it's gonna stop
the loss but yes you're absolutely
correct what Sam said he's stealing all
my thunder here all right yeah it's
gonna stop the loss because obviously
you risk management that's part of
trading so there's two types of
stop-loss orders though yeah we're gonna
stop the loss but once again it goes
back to what we've already talked about
there is a market stop-loss there is a
limit stop-loss now do you know which
one of those would be more risky
actually the board kid depending on
situation I think market will be more
risky all right finally column no the
women is gonna be much riskier so good
this will this will be a good loop so
let's say that Sam wants to sell at 300
as he set out here right if it goes
against something he wants to get out
300 but he says you know what I want to
sell 300 but I'm willing willing to sell
for 300 with the way the market operates
from a liquidity from a you know a
computer algorithm perspective there is
a chance that the price could drop below
300 and not get us through 50 shares
because the market moves so fast but
because he chose the limit his broker is
not going to sell so it could go down to
290 he's not gonna sell because Sam said
he wants a limit order 300 it could go
down to 50 he's
broker is not gonna sell because well
Sam said no no women order 300 so from a
risk perspective I'm not going to say in
all cases but in many cases the way you
want to approach it is a market order
because if you just want out then get
out so sure maybe that means Sam sells
at 299 and Senate 300 but would you
rather have that then get stuck in the
trade yeah yeah yeah they would be much
better to just get out for so that's why
lagina I'm not going to say that you use
a stop loss limit order never but I'm
struggling right now to think of a
situation where you would want to use a
limit for a stop loss and I think that
default setting in more most brokers but
certainly check is going to be all
market stop-loss meaning if it hits 300
you want out now and if that means you
own what you don't get out till $2.99
then so be it
at least you got out and that's how you
go about selling a stock you got to just
figure out the situation and once you
get in how many do you want to sell if
you want to sell right now that is again
the market order if you want to sell but
you only want to sell for a certain
price a limited price then that's where
a limit order would come into play and
that's how you would enter in everything
here I think we covered its and did we
get out of it you want to get you need I
yeah I think actually ask something what
about what it what I think case there's
a pattern date your route that plays in
place where if you have a capital less
than 225 K yo wouldn't it be better to
do a limit in that case if there's a
pattern day journal you mean in a sense
you've you don't have any more day
trades yeah well if okay that's a good
question and that's a whole another
video but that's a good question we're
gonna answer if you have used up why
sure you're saying you've used up all
your day trades yeah yeah okay so if you
you if you've used up all your day
trades and then you enter into another
trade don't do that because for what Sam
just brought about you can't get out if
you do get out you violate the pattern
day trader rule which is not good so
don't play the game of okay I've done my
three day trades
now I'm gonna happen once more because
if you literally can't get out without
violating the pattern day trading rule
that's a very risky situation does that
make sense yeah so with like we talked
about earlier it's one of those no trade
is the best trade in that
yep so good question but yeah you would
not want to get out or you would not
want to get into a trade if you
literally have no way to sell other than
violate in the pattern day trader rule
and then your account gets frozen and
it's thanks government thanks for thanks
for the pattern day trading rule but Sam
thanks for helping me out no problem I
think this is gonna help out a lot of
people we think making sure we didn't
skip on anything but you know you got a
first dictate how many shares you want
to sell then you got a dictate do you
want to sell them right now for a market
or I want to sell but for a limit and
then if it does go down you want to make
sure that you're using a stop loss of
the market sense or else you risk
getting stuck in the trade because if
the price flushes down through your
price well you told your broker you only
would want to sell for 300 but if it
goes through 300 and you're not able to
get out with it with the way the market
works then you you are at risk getting
out a whole lot lower than what you know
the 300 or in our situations 299 so Sam
thanks yep if you have any questions
leave them down below and do you have
your YouTube channel out yet oh no not
yet
just not yet all right well did you get
it out if you get it out soon yes we'll
put in it will be in the description see
he's very assertive I like that we'll
put Sam's youtube link down in the chant
it's gonna be about it's gotta be about
engineering or it's gonna be about
personal finance in general that's what
I'm planning to do him for my youtube
channel there we go
and also if you want to see the vlog
more of that just make a wish thing in
general we'll put that link down below
so you can get to Sam get to know Sam
better and yeah check that stuff out but
Sam thanks again and well that's how you
sell a stock if you're out there trading
alone currently and maybe are in the
market looking for a community to join
to assist you in your trading or to just
help you you don't give you another set
of eyeballs then I do have a private
trading community where you can trade
alongside me and other experienced
traders so what you see popping up on
the screen right now is both an
information link so if you click on the
inner circle one that is going to take
you to the page where I explain all the
details of what exactly come with the
community both the chatroom and the
newsletter and then the other image that
has popped up is a behind-the-scenes
tour where you can
exactly what is going to you know be
contained within the community I take
you through like I said
behind-the-scenes tour of everything and
that way you'll know precisely what you
are getting you know when you join so
definitely check that stuff out if you
are interested and thinking about you
don't want it to join a community and
let me know if you have any questions