Like to get into stocks but find the whole process a bit daunting? Too complicated? It’s really a lot easier than you think. Profitable, too.
There’s a reason why so many people play the stock market. It’s a great way to make big gains in a short period of time — if you have the right stock. Tech stocks, like Facebook and Google, are all the rage these days. In fact, the information technology sector surged in 2020, up more than 43%. Experts predict it will go up another 30% in 2021.
Another compelling tech stock is Bio-Techne (NASDAQ: TECH). Bio-Techne, with revenue of $738 million USD in 2020 and net income of $229 million, trades on the Nasdaq under the symbol TECH. TECH is up more than 180% in the last year alone and 128% year-to-date.
Still sound too intimidating? Too perplexing? If the answer is no, the next thing you’ll need to know is how you can purchase shares of TECH? It’s a simple, 4-step process.
How to Buy Bio-Techne (NASDAQ: TECH) Stock
Before you can buy shares of TECH, you’ll need to know how to buy stocks. Unless you want to pay a full-service broker, it’s worth learning the process yourself.
Step 1: Pick a brokerage.
If you’re ready to roll the dice and get some shares of TECH, the first thing you’ll need to do is find a good online brokerage. Online brokerages offer discounted fees and fast trades.
Most online brokerages offer $0 commissions with $0 account minimums. You pay only a low flat fee per trade. Of course, if you’re going to buy shares of TECH, you’ll not only need to open an account but deposit money there as well.
Step 2: Decide how many shares you want.
Once you have your new account set up, you’ll have to decide exactly how many shares of TECH you want to buy. This decision doesn’t come easy.
One way to look at it is by using the casino theory. That is to say: if you can’t afford to lose, don’t lay down the bet. Even though you’re buying stocks and not playing roulette, in reality, it’s still gambling.
Decide how much money you want to invest, divide that by the price per share, and that’s how many shares you’ll need to buy. For example, if TECH is trading at $500 per share and you have $5,000 to invest, you’ll need to buy 10 shares.
Step 3: Choose your order type.
Now that you’ve got your brokerage account set up and stocked, and you know how many shares of TECH you want to buy, you’re going to need to decide which type of order to place. Sound harrowing? It’s not.
There are 2 types of orders: market and limit.
A market order is the most basic. When you place a market order, that means you’re willing to buy it at the current price. No negotiating. It’s so easy, and with most online brokerages all you have to do is hit the BUY button.
A limit order is a little more complicated, but it could lead to you getting the stock at a better price. Just like haggling at the flea market, you’re trying to bring the seller’s price down. Be careful, though. If a seller doesn’t come down on price, you may wind up paying more than the original market value.
Our recommendation? If you’re a beginner, just buy the stock at market price.
Step 4: Execute your trade.
The difference between executing your trade now or later is again in the type of order you place: market or limit. If you go for the limit order and end up unlucky, that “later” could very well turn into “never.”
Executing your trades in an expedited manner can, however, have a lot to do with the broker you choose. Some brokers have faster trade execution times than others. The best, from faster to fast, are:
Interactive Brokers — 5 seconds
Schwab — 6 seconds
TD Ameritrade — 8 seconds
Fidelity — 18 seconds
TradeStation — 26 seconds
Speed isn’t everything. Price is just as important. The Customer Experience Index (CEI) measures both speed and price.
Bio-Techne (TECH) Stock History
Why do we study history? So the chances of repeating it decrease. With stocks, we want to get a feeling of where they’ve been, and that way we might know where they’re going next. It’s the same with TECH.
The easiest and most accurate way of seeing what price levels a stock has hit in the past is to look at a chart. The most popular price points are:
- Year-to-date (YTD)
For TECH, we see that from June 2016 until April 2002, the stock price remained between $100 and $200 per share. It was just in the last year of trading, beginning in April of 2020, that TECH moved above $200 per share. From April 2020 to June 2021, TECH has moved steadily higher in value, peaking at $432.27 per share on April 23rd.
Bio-Techne (TECH) Restrictions for Retail Investors
Of course, if you’re a retail investor making trades through an online brokerage, there are restrictions.
The retail investor is you, the individual. If you have a cash account, you’re restricted to purchasing only the amount of stock you can afford. Put simply: $5,000 in your cash account equals $5,000 in stock purchases (including trading fees).
If you have a margin account, however, you can buy over the amount of cash you have in your account. This practice, known as “buying on margin,” comes with limitations.
Think of buying on margin as a loan. The amount of money you can borrow to buy more stock than you have cash for depends on the loan value of the stock itself. Some stocks you can borrow up to 50% of the stock value. Others, 70%. Some stocks are not eligible to buy on margin and have no loan value at all.
Pros and Cons of Buying Stocks
- Potential big gains
- Grow with the economy
- Keep ahead of inflation
- Big losses
- Risky investment
- Elevated stress levels
Investing in Bio-Techne (TECH) Today
There it is, as easy as 1-2-3-4. All the steps you need to invest in Bio-Techne (TECH).
The last question is: when should you buy it? When the price is low, of course. But when is that? Your guess is as good as mine.
If you’re looking for unbiased advice, check out SEC.gov. The site is run by the federal government and has some great tips on what to do and not to do when buying stocks. Happy investing.