How to Buy Torchlight Energy Resources (TRCH) Stock

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Contributor, Benzinga
June 24, 2021

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Been watching the news about a high-flying stock but missed out again? Don’t get left out. Read more about becoming a stock trader. First, you’ll need to know how to buy stocks.

Torchlight Energy Resources (NASDAQ: TRCH) is an oil and natural gas exploration company. Its main business is the acquisition of early-stage development projects. Primary investments include the Orogrande Project in Hudspeth County, Texas, and the Hazel Project in the Midland Basin. Torchlight headquarters are in Plano, Texas.

How to Buy Torchlight Energy Resources (NASDAQ: TRCH) Stock

 You see it all the time: This stock doubled or that stock made millions for its investors. Maybe you’re wondering — why am I not one of those investors? You can be.

What do the names Facebook, Google, Apple and Microsoft have in common? Yes, they’re all famous and fabulously wealthy companies. They are also all stocks — technology stocks. 

These big companies trade on the Nasdaq stock exchange, the home to technology stocks. But have you heard of a company called Torchlight Energy Resources (NASDAQ: TRCH)? TRCH may not be a household name like Facebook or Google, but it’s up 300% since May. That’s more than any of those other more famous stocks.

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If you’d like to buy shares of stock but don’t know how, there’s no time like the present to learn. Don’t let technology intimidate you; it’s a lot easier than you think.

Step 1: Pick a brokerage.

Stocks sell at brokerage firms, and you’ll find many firms to choose from.

Unlike the old days when you’d call up a stock broker and pay a hefty commission to buy a stock, these days most transactions take place online. Online brokerage firms offer many of the same services as full-service brokers at discounted rates.

Benzinga can help you find one of these great online brokers, like:

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Most online brokers are perfect for beginners. They offer stock buying-and-selling services for a fraction of the price of a full-service broker and typically charge no commission. Account minimums are low, which means you won’t have to break the bank to set up an account.

Step 2: Decide how many shares you want.

After you set up your new stock-market account and deposit some money, you’ll need to decide how many shares of TRCH you want to buy. Shares are like currency for stocks, and each one has a numeric or dollar value. 

Say you want to buy $5,000 worth of TRCH. TRCH at the time of your purchase is trading for $7 per share. In order for you to purchase $5,000 worth, you’ll need to buy roughly 714 shares. Just to make things easy, you can round it down to 700 shares.

Before you plunk down your $5,000, remember the stock market is a gamble — not a sure thing. Like if you’re playing poker, only bring as much money as you can afford to lose. Most reputable stocks will not go to $0 in value, especially not overnight, but it’s safest to assume it could happen.

Step 3: Choose your order type.

Now you’ve reached your first crossroads. You probably didn’t know there are different ways to order your stock including market and limit, among others. You might want to go the easiest route, but first let’s go over exactly what the differences are.

The 1st type, a market order, seems on the surface to be the simplest way to go. All you do is choose your stock and click Buy. Wa-Lah! You’ve just bought the stock. Perhaps it was easy, but at what price did you buy in?

When you clicked the Buy button, of course you thought you bought the stock at the current price. But what if it takes a while for your order to process? What if by the time your order goes through, the price of the stock has moved up a dollar or two? This drawback of the market order makes it a less popular choice than a limit order.

The 2nd type is a limit order. The limit order, while requiring more thought, gives you more control over exactly how much you want to spend. 

The limit order means you “limit” the amount you want to spend on the stock. First off: pick a number. Let’s say TRCHis trading at $7 per share. You determine that's what you want to spend and not a penny more. Or, like haggling for a used car, you want to get a cheaper price. Offer $6.75. You never know; you might get a good deal. Be aware, however, that if your low-ball offer is not accepted, and the stock goes up, you might get left behind and wind up paying even more than the original $7 per share when you institute a future trade. It’s the stock market; it’s a gamble.

Step 4: Execute your trade. 

If you’ve made your decision how many shares of TRCH you’re going to buy andhow you’re going to buy it (market or limit), then it’s time to execute your trade. This part is important because it may well determine at what price you purchase your stock. The execution, the actual buying of the stock, is out of your hands at this point. It’s up to the brokerage firm now. 

If you want to make sure your execution is fast, you’ll need to back up a minute. That determination comes when deciding which online brokerage firm to choose. Different brokerage firms have different execution times. Some are faster than others. A LOT faster. 

Take for instance Charles Schwab. Schwab is the largest online brokerage firm in the country. Stands to reason it would be the fastest, too. Not so. Interactive Brokers is faster. While execution times at Schwab average 6 seconds, Interactive Brokers takes 5 seconds, TD Ameritrade comes in at 8 seconds per trade, and Fidelity lags behind at 18 seconds. Big contrast.

Execution times can mean the difference between whether you get your order filled or not, and at what price. 

Torchlight Energy Resources (TRCH) Stock History

TRCH has seen massive growth in share price for June 2021. In fact, before 2021 TRCH was trading consistently below the $2 mark. On June 7, shares began trading above $3 for the 1st time. On June 15, TRCH broke through $5. It was just getting warmed up.

By June 18, TRCH was above $6 per share. On June 21t, TRCH peaked, hitting a 52-week high of $10.88 before closing the day at $9.92.

Stocks: Restrictions for Retail Investors

The retail investor. That’s you — the individual. As an individual, you have limitations other professional traders do not. Even with these restrictions, you do have certain privileges like “buying on margin.”

Buying on margin means you can borrow money to buy stock. Buying on margin can be risky for the beginning investor. If you have a standard cash account, let’s say with $5,000 in it, then you can buy $5,000 worth of stock (minus trading fees). When you buy on margin, that means you can buy more than $5,000 worth of stock. But you are borrowing that additional money.

Depending on the stock, you can borrow between 50%-70% of the value. With some stocks, you’re not allowed to borrow at all. Be careful when buying on margin, just like you would when borrowing money of any kind.

Pros and Cons of Buying Stocks

Pros:

  • Potential huge profit
  • Chance of stocks following a rising economy
  • A curb to inflation

Cons:

  • Potential huge losses
  • High risk potential
  • Stress from stock volatility 

Buying into Torchlight Natural Resources

If you’ve determined by now that buying stocks is for you, good luck. Is that stock TRCH? That’s up to you. We don’t make specific stock recommendations here. The eternal question is, of course: When do you buy in? When do you sell? Who knows. It’s a crapshoot. 

If you’re looking for some good advice from an unbiased source, take a look at SEC.gov. The U.S. government manages the site and has helpful tips on what to look out for when buying stocks.

Frequently Asked Questions

Questions & Answers

Q
Is TRCH in the news?
A

PLANO, TX / ACCESSWIRE / June 21, 2021 / Torchlight Energy Resources, Inc. (NASDAQ: TRCH), an oil and gas exploration company (‘Torchlight’), today announced that Torchlight and Metamaterial Inc. (‘Metamaterial’) have agreed to extend the outside date by which Torchlight and Metamaterial must close their business combination transaction (the “Arrangement”) to June 30, 2021. The extension provides time for the June 24, 2021 record date and the June 25th payment date of the special Series A Preferred Stock dividend, declared on June 14, 2021, to transpire.

Q
Is TRCH an OTC?
A

TRCH is not an over-the-counter or OTC stock. Stocks sold on the OTC Bulletin Board usually trade below $1. They call these types of stocks “penny stocks.” TRCH sells for more than $1 and trades on the Nasdaq.