From my previous article, I have shared about the important elements that you should consider when opening a stock trading account. I have also shared a step-by-step guide on how to open a Rakuten Trade stock trading account too.

That said, opening a stock trading account does not solve ONE key problem: How to make your first trade?

Reason being, every stock trading account has a different interface and it could be overwhelming especially for someone new to the stock market to start making transactions if one does not understand how and what certain key functions mean and works.

In this article, I am going to share a simple step-by-step to guide on how to execute a transaction on Rakuten Trade, and explain some key terminologies along the way (Don’t worry it is very straightforward once you get it!).

Before we move on, I am assuming you have read my article on How to Choose a Stock Broker and have opened a Rakuten Trade (Cash Upfront) account. If not, you can read it HERE.

With that in mind, buck up and let’s go!


Step-by-Step guide to Buy a Stock on Rakuten Trade

Upon logging in to your Rakuten Trade account for the first time, you will have to first fund your trading account using the funding methods available. In short, the easiest method is to fund your account using your saving/current account.

Step 1: Search for the stock that you want to buy at the search bar.

Step 2: Click ‘Buy

Order Page

At the order page, there are a few key sections that you got to familiarize yourself with:

1 – Trading Limit: How much capital you have to invest.

2 – Market Price: The price where a share is traded most actively between buyers & sellers.

3 – Best Buy & Best Sell Table: This table shows us what is the price the people are buying/selling and the volume.

The more volume it is for a price, it means that the faster you will be getting it once you execute an order. (eg. You will be able to buy at RM1.28 immediately compared to trying to buy at a lower price of RM1.27)

4a – Board Lot & Odd Lot:

Board lot means you buy in a minimum multiple of 100 units. (1 Board Lot=100 units of shares, RM1.28*100=RM128)

Odd Lot means you can buy in a multiple of 1 unit.

•Since more people will buy in Board Lot, your order will usually be filled easier compared to buying in odd lots.

4b – Quantity:

•If you buy in Board Lot, your quantity will be in the multiple of 100. (eg. Put 2 if you want to buy 200 units of shares)

•Odd lot means you are free to key in any number of units that you want. (eg. Key in 88 if you want to buy shares in 88 units)

5a – Order Type:

  • Limit Order: Queuing to Buy LOWER than market price. (if you are selling means you are queuing to Sell HIGHER than market price)
  • Market Order: Buying or selling at MARKET PRICE. (order will be fulfilled almost instantly)

5b – Limit Price (not available if ordering at market price):

  • The price you want to Buy below market price. (eg. Queuing to buy cheaper at RM1.26 instead of the market price of RM1.28)
  • Note that buying below market price may not 100% guarantee that your order will be fulfilled.

6 – Validity (only available if buying/selling via Limit Order):

  • Day: Your order will be canceled if it is not fulfilled by day end (5pm). (eg. If you queued at RM1.26 but did not get fulfilled, then your order will be canceled by 5pm the same day)
  • Good-Till-Date (GTD): You can decide the validity of your order. (eg. You queue for the price of RM1.26 until X date)

7 – Trading Pin: Your numbered pin to approve your trade. (Set when you open your account.)

You have successfully made your first transaction!

Step 3: Fill in the details of your trade, your Trading Pin and click Confirm Order.

Note:

1. Decide if you are buying Board Lot or Odd Lot.

2. Decide your Quantity.

3. Decide your Order Type.

4.Key in your trading pin.

5. Confirm Order.

6. Wait for your order to be filled.

And we are done! This is how exactly you can buy your first stock via Rakuten Trade.


KLSE Market Operating Hours

The market is open from Monday to Friday, except for public holidays. Details on active market hours are as stated below:

Stock market operating hours


No Money Lah Verdict

With a good understanding of the terminologies and functions, hopefully, you will not be so overwhelmed with these stock trading platforms!

  • If you find this article useful, and would like to open your Rakuten Trade stock trading account, do consider using my referral link HERE to register for your account. For that, I will gain 500 RT points from this registration. Otherwise, you can always google for Rakuten Trade and open your account too.


p.s. Learn HOW to invest in the stock market to generate a long-term passive income stream! More details HERE. 

Check out: 5 BIGGEST MISTAKES that I Made In Stock Market Investing

 

 


Chin Yi Xuan

At 24, Yi Xuan is an Economics graduate from University of Malaya. He is currently a full-time day trader while working part-time as a table tennis coach and an active Toastmasters club member.

As the founder of No Money Lah, Yi Xuan is passionate in writing about adulthood topics from personal happiness to money and investment.

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