Yes, wood stains are suitable for outside. Wood stains come in a few varieties: water-based or oil-based. I would recommend using oil-based wood stain outdoors because of its resistance to elements compared to water-based stain.
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Most stain is applied with a brush, a roller, or spraying. The manufacturer's instructions will advise the best method to suit your chosen stain.
Your wood must be clean and dry. That means all dirt and residual paint should be removed by washing and scraping. If you want a smoother surface, you can sand the wood, which helps remove dirt and...