So you’ve been looking at getting
into trading stocks and you’re not sure where to start. What program or app to
use, how to use it, how much does each trade cost, etc. Maybe you’ve heard of
Robinhood before and you’re looking into using it as your main platform to
trade stocks. Well you’re in the right place! We are going to dive into all the
Robinhood Basics in this post.
Benefits
One of the
most important things to know about Robinhood is that there are no fees per
trade. This means that if you’re staying within the Pattern Day Trade Limits
for accounts under $25k, then you can trade away without any commissions. This
is great for beginning traders so that you don’t waste away your initial investment
on fees. Other platforms like TD Ameritrade charge $6.95 per trade, which can
add up quickly on smaller accounts. For this reason alone, Robinhood has become
incredibly popular.
Additionally,
Robinhood also offers cryptotrading. The app itself is incredibly minimal and
simple to use, but still offers incredible amounts of information. You can set
watch alerts for stocks or cryptos. You can also set a watchlist of specific
stocks that you’re wanting keep an eye on. If you click into each stock you can
see information about the company and see articles that have been posted about
them. It’s very helpful to quickly research a company. You can also see
earnings information in this section as well.
Another
cool feature of Robinhood is Pre/Post Market Trading. This is a more recent
addition to Robinhood, but a really great way to get in to your position before
market opens. Markets are less fluid during this time so it can be riskier, but
you have a greater potential to get into the positions you want at, hopefully,
the price you want.
Downsides
There are
some downsides of Robinhood too though that you should know. Compared to TD
Ameritrades ThinkorSwim program, Robinhood is fairly basic in the technical
side of things. You can set different order types for buying and selling. These
include Market Buy/Sell, Limit Buy/Sell, Stop Loss Buy/Sell, and Stop Limit
Buy/Sell. Once you start getting the hang of consistently trading you might
find that using ThinkorSwim for your analysis will provide better results even
if you still use Robinhood for buying and selling.
Free Stocks
The last
really cool thing that I thought I should point out about Robinhood is that
they offer a free stock promotion when you sign up or share your link to have a
friend sign up. To sign up for Robinhood click here to join! If you join using this link you will both receive a free
stock valued anywhere between $2.5 and $200. Once you’re signed up if you decide to
have your friends or family sign up to you can share your link with them and
then you will BOTH get a free stock too! That’s free money!
My hope
with this post is that you will now understand the basics of Robinhood and be
able to get started trading stocks. In the coming weeks I will be releasing
more in depth tutorials for Robinhood and other apps as well! If you want to trade stocks with Ricky live every day and
learn how to trade stocks: https://learnplanprofit.net/lesson-li...
- Nick Benko
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