Prepare and place a buy
Move from research to a sized, documented order without mistaking execution for analysis.
After this module
You can write a pre-buy case, choose a position size, understand common order types, and verify execution costs.
Execution trade-off
Price control ↔ Fill certainty
The pre-buy note
Before opening the broker, write what you own, why now, the evidence that matters, what would prove you wrong, and the maximum size.
- Use a thesis you can falsify.
- Record the current evidence and valuation range.
- Schedule the next review or known catalyst.
Example
‘Great company’ cannot be falsified. ‘Retention above 110% and operating margin progressing toward 20%’ can be checked.
Position sizing
Size is the bridge between uncertainty and survival. The less you know and the wider the outcomes, the less capital one idea should control.
- Measure the position after the proposed purchase, not before.
- Account for hidden overlap through sectors and funds.
- Decide an add/trim rule before volatility tests your judgment.
Common trap
High conviction does not eliminate unknown risks or justify money you cannot afford to lose.
Market, limit, and stop orders
A market order prioritizes execution; a limit order prioritizes price but may not fill. A stop order becomes active after a trigger and can execute far from that trigger in a fast market.
- Check the bid–ask spread and liquidity.
- Be especially cautious outside regular market hours.
- Confirm fill price, quantity, fees, and order status.
Example
A buy limit at 50 can fill at 50 or lower, but it may never execute. It is not a promise that the investment is worth 50.
True transaction cost
The economic cost can include commission, spread, FX conversion, taxes, fund expenses, and opportunity cost.
- Check your broker’s fee schedule and FX markup.
- Avoid letting ‘commission-free’ imply cost-free.
- Keep contract notes or confirmations for reconciliation and tax records.
Try it yourself · no real money
Test a limit order
Set the side, live market price, and your limit. See the trade-off between controlling price and getting an execution.
Order status
Waiting for price
A limit controls the worst acceptable price, not whether or when the trade happens. Real markets also have spreads, partial fills, gaps, and changing quotes.
Limit order: prioritizes price.
Neither fixes a weak investment decision.
Knowledge check
You care more about the maximum purchase price than immediate execution. Which order most directly expresses that?
Put this module to work
Continue with a Bullboard tool
The lesson gives you the framework. These tools help you apply it to a real decision.
Decision Lab
Estimate position size and choose an order approach with explicit trade-offs.
Prepare the order →Add a position
Record shares, price, currency, fees, and thesis so the decision has a durable starting point.
Record a position →Portfolio import
Import broker activity and reconcile lots when manual entry would be slow or error-prone.
Import transactions →