Many young investors ask pretty much the same question. How do I get started trading stocks? Its way easier than most people think. A lot of investors look into platforms like E*Trade or TDAmeritrade. Unfortunately, these platforms charge fees to trade on the market. The young investor needs a way to invest with ease and without the burden of fees that diminish the returns on one’s investment.
That is where Robinhood comes in. Robinhood allows for free trading across the market with very few exceptions through their phone application and website. Robinhood’s name comes form the legend of Robin hood who stole from the rich and gave to the poor. Essentially the concept is for investors to have a level playing field to compete with other investors who use larger platforms to invest in the market.
From ETFs to index funds, Robinhood gives new players in the market a voice without the hands of larger platforms digging into their pockets and charging exchange fees. Building a portfolio is relatively simple. Search for a company in the search bar, see a stock’s current performance for the day as well as its performance for the past week, month, three months, year and five years, take a look at the analysis tools located under the graphs and finally read the description of the company’s overview to get an idea of how the company operates. Stocks also feature up to date news from credible sources like yahoo finance and CNBC. Coupled with your own research from the internet on the stocks that interest you, you can make informed decisions to buy these securities.
One of the coolest features of Robinhood is that after signing up for an account you are able to refer others to the app and receive a free stock. You and your referral will each receive a free stock that is immediately added to both portfolios. There is a 1 in 150 chance to receive stocks as prestigious Apple and Ford. Robinhood Gold is another feature that allows you to pay for access to pre and post market trades. It is not mandatory so if that is not for you, then feel free to utilize their free platform.
The stock market can be a very lucrative way of making money. Of course, there are risks to investing but making informed decisions based on sound analysis can negate that risk. Gaining the experience at an early age investing is a great way to find yourself as an investor.
In my own personal experience, I invested in a few companies that did not do very well using Robinhood. I have been burned a few times investing in companies like General Electric and Game Stop a little over a year ago when I was just starting out. These are stocks that I am currently still hanging on to hoping for a positive return. In the meantime, I have grown more experienced researching and analyzing securities. I have now turned a nice profit and have increased my portfolio’s value by roughly 35 percent. Robinhood is the reason for my success because of the absence of exchange fees for buying and selling stocks. I have been more aggressive making moves in the market as a result.
Robinhood is easy to use and allows people, who just want to dip their toe in the market, see if it is something they want to get involved in. It is great for people just starting out and from experience, can tell you it is fun and easy to use.
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