The cheapest way to buy Facebook/Meta Platforms (META) stock is by learning how to execute your Facebook trade well. In this guide, I’ll tell you just how to do that!
Sounds like a tall order? It doesn’t have to be. Tens of thousands of people do it everyday.
I teach new traders everything I had to learn for myself when I started trading. That’s why I’ve written a beginner’s guide to the most affordable way to buy Facebook shares.
I wouldn’t exactly call Facebook stock “cheap.” But if the price keeps increasing the way it has the past 10 years, its current price is going to seem like a bargain!
Table of Contents
- 1 How to Buy Facebook Stock (NASDAQ: META)
- 2 Should You Buy Facebook Stock?
How to Buy Facebook Stock (NASDAQ: META)
Here’s how to buy Facebook stock.
1. Get a Good Broker that Lets You Trade Facebook Stock
This is the first step to buying any stock.
Choosing a broker isn’t the hardest thing. Here’s what I look for:
- Low commissions and fees
- Fast trade executions
- Access to a wide range of stocks
- Good customer service
- A great trading platform
It should be good for trading — I helped build it.
StocksToTrade has dynamic charts, a selection of pre-built stock screeners, awesome add-on alerts services, and more. It has everything I use to trade in one easy place.
2. Determine Your Goals and Your Risk
Every trader wants to make money — but unless you have a clear idea of your goals you probably won’t achieve them.
Some traders are looking for short-term gains. Others want to invest for retirement.
If you’re an active trader, the 100% annual return Facebook has had for the past 10 years might not be enough for you. I look to make 5–10% per trade. Most of my trades take only minutes.
Many long-term traders and investors are looking for exactly the kind of chart Facebook has. Facebook stock is what is called a “growth stock.” That means it has a track record of growth, which is usually a good sign for future gains.
The flip side of this is volatility. Make sure you only risk what you can afford to lose.
Your job as a trader is to profit from volatility, do NOT fall in love with any trade or asset as a trade is not profitable until you lock in your profits & getting emotional can muddy the waters. Similarly, it's difficult to cut losses fast if you become too emotionally involved
3. Do Your Research Before Buying Facebook Stock
There are several ways to research stocks.
First, there are indicators of the company’s value, like its sales figures, debt, and more complicated indicators like price-to-earnings (P/E) ratio. These indicators all fall under the category of fundamental analysis.
Short-term traders tend to look at charts more than fundamental indicators. Short-term price moves and volatility tend to relate more to market sentiment than the stock’s “real” value.
I tell my students to pay attention to volume. This is one of the best indicators of an upcoming price move.
4. Have a Trading Plan
After you’ve done your research, you should have an idea of what you should pay for Facebook stock, and how much you want to profit off of your trade.
Write down your preferred entry, and how much of a win you’re targeting.
You also need to define your risk. If the stock price falls below your risk — that’s the point you have to cut your losses!
Without a trading plan, you’re just gambling. That’s a good way to lose your trade.
In the Trading Challenge, I teach students all the things I had to learn for myself. Things like creating a good trading plan and executing it well.
You don’t have to go it alone. If you’re willing to put in the work, I’m willing to help you grow into the best trader you can be.
5. Enter Your Facebook Stock Order
Trading is 90% preparation. Now that the hard part is over, it’s time to place your Facebook stock order.
Here’s the step-by-step:
- Always use a buy-limit order. Market orders can execute for any price. This is not the cheapest way to buy Facebook stock — and it can be dangerous in stocks with less liquidity than Facebook.
- Cut your losses quickly. As soon as you hit your risk you NEED to exit the trade. Your number-one job is to protect your account. If a trade isn’t going your way, there’s a poor chance that it will course-correct at the last moment.
- Don’t get greedy. You always want to sell into strength. The way that I’ve made $7.4 million in my 20-plus years trading is by going for singles. That’s the best way to become profitable that I’ve seen in all my experience trading.
Should You Buy Facebook Stock?
You should buy Facebook stock if it fits your trading goals, and your research indicates that there’s an opportunity.
META’s value has climbed nearly 120% through the first five months of 2023. It’s learned how to use AI to replace the data tracking it had used to deliver effective ads. This could be a very good sign for the future.
Pros of Buying META Stock
There are a number of advantages to buying Facebook stock.
- The Social Media Leader: Social media is one of the biggest ad engines in the world. Between Facebook, Instagram, and Whatsapp, Meta Platforms is the biggest name in the sector.
- The Metaverse Could Still Be a Thing: If social media becomes a virtual reality space, Facebook has a head start. It believes in it so much it changed its company name to Meta Platforms.
- TikTok Could Be Banned: Both sides of the U.S. government seem to agree that allowing Chinese software on American phones could be dangerous. If more bans happen, Facebook stands to gain.
Cons to Buying META Stock
Here are the cons you should weigh when making this decision…
- Regulatory Concerns: Government regulators have had Facebook in their sites for years now. The latest salvo is a California law that aims to have Facebook pay for sharing news stories.
- It Isn’t Cool Anymore: If user engagement goes down, so does ad revenue.
The Metaverse Might Not Become a Thing: The company’s strategic shift towards the metaverse hasn’t come to much so far, and there’s no guarantee it will in the future.