Trade Stocks with Robinhood

Trading stocks is something we all have heard about before, but many of us do not know where to begin. For many years, I have tried out different strategies and trading sites and have had a little success. However, all of the sites had one major problem for a small investor like me: trading fees. Robinhood.com solves this problem and many more. There has never been a better time to learn stock trading and I want to help to get you started.

To start, I am not a financial advisor or Wall Street stock whiz, I am someone who is always looking for ways to make my money work for me and enjoy sharing what I have learned over the past 20 years as a hobby trader.

My biggest issue was always the trading fees on other trading sites. They were usually $6-$10 for each buy or trade action. Some sites would charge $10 to buy and $6 to sell or some other gimmicky thing. For someone who has a few hundred dollars to play with, this means you have to pick a stock that will make you enough money to cover the fees AND extra to earn a profit. This is where I would always lose interest. It would take way too long to make that much profit when I was starting with something like $300.

Here is what it looked like: I had $300 in my account to work with. I found a stock I liked in the $20 range and wanted to invest. I would have to subtract $10 (to cover the buy fee) and then figure out how many shares I could get for $290. I could buy 14 shares at $20.71 and have $0.06 lingering in my account. In order to make back my $10, cover the sell fee, and make a profit, I would have to wait for the stock to grow. Big swings in small stocks do not happen often and this could take a couple of weeks at best.

Now, that you can see why I would lose interest, you will also be able to see why so many of us love Robinhood.com.

No fees: Robinhood.com does not charge any trade fees. I repeat $0…always.

Fractional Share Purchases: Fractional share purchases are when you are able to buy a fraction of a stock. My example above had $0.06 left over. If I was able to buy partial shares, I could have invested $290 and ended up with 14.002 shares and had every penny working for me. Robinhood.com allows you to buy a set number of shares OR invest a particular cash amount. The great thing about this feature is you can also buy fractions of expensive stocks like Bitcoin or Amazon.

Analytics: Nothing beats the in-depth company views and financial reports you can get from Yahoo Finance, but the trading charts offer RSI and MACD views (I will get into this in a later post) where many others fall short.

Free Stock: Banks used to give you a free toaster or something crappy like that when opened an account. Robinhood.com will give you a free share of stock and if you use this link: Robinhood.com to sign up, you get a free share and so do I. Most of the shares are only a few dollars, but it is still better than a toaster. P.S. I have never heard of anyone I know getting more than an $8 share of stock.

As you can see I love Robinhood.com and think everyone who has any interest at all in learning to invest, needs to start there.

Published by Joe Lawrence

Joe is passionate about developing others using the lessons he has learned from education, mentors, military and life. His personal mission is to serve others through mentorship so they can grow into their full potential as leaders.

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