Here are a few of the leading reasons that you should consider trading stocks online with the Robinhood App:
It’s Inexpensive – Start-up prices are as low as just $100, and in some cases, you can start trading for free.
It Has a High Earning Potential -Stock trading has one of the largest earning potentials of any work-at-home task. Some novice stock traders are making thousands just by trading stocks online.
You Can Set Your Own Hours – You can trade part-time or full-time from the comfort of your home.
Quick Returns – Stock trading at home has the potential to see a return on your investment in days, hours, or even just minutes.
Location Independence – Stock trading can be done while traveling, at home, or even in-between tasks at your day job.
For a quick ten-minute long walkthrough of using the robinhood app check out this helpful video:
Exactly How Risky Is Stock Trading Online?
Stock trading does have some risk entailed, but it can be done safely as long as you practice self-control and never invest more than you can. Money for buying stocks should never come out of your monthly budget needed for essential things such as your mortgage, rent, car insurance, food costs, etc.
Skilled investors know to manage the risks associated with trading stocks by using a selection of strategies that you too can implement to keep yourself from ever getting in over your head. Greed is the main cause of large losses, so practice self-control and extend yourself when trading stocks.
It is imperative to realize that stock trading is very different from gambling – while there is a good luck component, there is also a lot of strategy to effective stock trading.
The largest factor in reducing threats in trading is knowing how to control your emotions. Stocks may go up and down, and it does you no good to panic; this will only make a stressful situation worse. If you have existing issues with stress and anxiety, it is recommended that you get those under control before getting involved in the stock market.
How Is Stock Trading Different from Investing?
To trade stocks means you do not hold a position and buy for more than a couple of days. This is quite different from investing. Stock investors will get a company’s stock based on the underlying financials and possible for development over the longer-term.
While stock traders frequently do not care about the long-term development capacity of a stock.
Rather, they just intend to make a profit in the short-term. Stock trading is about buying and selling stocks to make a fast profit. Investing is about buying stocks for long-term gains.
Stock trading is more high risk than long-term investing but has a higher rewards potential. While investors look to make something in the range of a continual 4% annual return, stock traders look to buy a stock and sell it within a matter of days for as much as a 20% profit.
Robinhood – The Free Mobile Online Stock Trading Platform
Robinhood is a mobile application that was designed by two business owners in San Francisco. They recognized a strong market demand for a cost-free means for millennials to start investing and trading in the securities market.
The Robinhood app was targeted at millennials and purposely designed to be utilized on smartphones (you can also access laptops and desktops).
One of the most appealing aspects of the Robinhood app is that there are no upfront fees to use an account, and you can start trading with just a few dollars as there is no minimum – many other competing apps require you to have hundreds of dollars ready to invest just to open an account with them.
This makes it feasible for the average individual to begin trading, rather than just something that the upper classes do.
What Type of Trading Can Robinhood Be Used For?
Robinhood has actually been very successful, with over 5 million customers, and has a multi-billion-dollar appraisal. It has the functionality of a costly standard broker agent platform but without any of the cost.
The Robinhood app can be used to buy stocks, options, crypto-currencies, and exchange-traded funds (ETFs).
How Does Robinhood Make Money?
While the Robinhood app is completely free, and upgraded pro version called ‘Robinhood Gold’ costs $5 per month. This pro version of the app comes with added features, but the free version has more than enough functionality for most users.
The Golden Rules To Follow When Trading Stocks Online
In order to be successful in trading stocks, it is important to do it right. Here are five principles to keep in mind when trading stocks:
- 1. Never let feelings alter your trading plan.
- 2. Never trade with cash that you can not manage to lose.
- 3. You will, at some point, have trades that lose money.
- 4. Make trades frequently. Get used to buying and selling by doing it regularly.
- 5. Only make trades you are comfortable with.
Best Beginner Stock Trading Strategy To Make Money
Start small – only buy and sell stocks that are valued under $20 per share.
These more affordable options tend to have extra volatile rate activity, making it possible for bigger gains during temporary trades.
The ‘leading’ stocks like Google, Apple, or IBM often tend to be preferred by long-term investors because they have inherent growth potential and price security, as demonstrated by those companies’ long-term success.
These are not beneficial qualities for short-term trades as there won’t be much of any difference – the price could be the same a week from now as it is today.
Alternatively, for companies with low-cost stocks, they can sometimes go up by 50% or even 100% in value in a short period of time, so you can buy a stock for $1 and sell it for $1.50 or $2 the next day. This is not uncommon in this type of stock trading.
You see, this volatility is needed for fast trading earnings. The firms behind the stocks that we trade are not terrific companies. They normally have debt, inadequate cash-flow, and also frequently no genuine items yet.
They would certainly be terrible for lasting financial investments, but you can earn money quickly by trading against the unpredictable nature of the stock’s price.
How To ‘Predict’ The Future Price Of a Stock
The majority of people that are not investors assume that short-term price changes are uncertain and also random.
The truth is they are not as random as they may appear to the untrained eye.
Using patterns in the price graphs of stocks is called technical evaluation. We use it to offer us an indication of where the price of a stock might enter the future, either up or down depending on the pattern.
Technical evaluation is a reputable trading technique that many individuals make use of to earn money trading.
The way that it works is because of the fact that people all recognize the patterns forming and come to the exact same conclusion.
A pattern that signifies that the stock will likely go up will certainly motivate individuals to purchase more of it; thus, the forecast happens – like a stock trading manifest destiny – the buying pressure will raise the stock’s cost. It is a self-fulfilling prediction.
At the heart of the technical evaluation, the core principle is the suggestion that the price activity of a stock will repeat over and over once more. This forms a recognizable pattern that provides a greater probability that the stock will proceed along that same pattern.
We search for one of the classic rate patterns developing as well as by the stock. We prepare for the pattern proceeding is fairly predictable instructions.
The Channel Pattern
I want to show you precisely what I imply by duplicating price patterns. The most convenient pattern to show you is called the ascending channel pattern. It is so easy. All you need to do is draw two lines on a cost chart to indicate the cost direction and pattern.
An example of the rising graph pattern is shown in the chart below. It shows the stock price of Amazon over the last 8.5 months.
Trick principle: Stock prices can adhere to predictable patterns because the buyers and sellers have similar ideas and techniques (like technical analysis) for buying and selling the stock.
How to Make Money Trading the Channel Pattern
Finding a stock that remains in a price network (like Amazon shows in the chart above) is the initial step to making money from this network pattern.
When you have actually located a pattern, you can then attract both blue lines to theorize the rate direction and make a forecast of where the stock rate will certainly enter the future.
As soon as you have a potential channel pattern, you can deal at various points along the way.
This is where money management and self-control play a big function in successful stock trading.
If a pattern stops working or the price is going against you, – cut your loss swiftly.
Alternative To Robinhood: Webull
Webull is a totally free trading application with numerous benefits and features that make it above similar trading applications. Webull is made for seasoned and intermediate traders, with lots of tools that newbie traders will enjoy.
Just how can I get started with Webull?
1. Enroll in a WeBull account here.
2. Download the application on iPhone or Android.
3. Go to menu > “My Free Stock” > Click “Get It Now,” which starts your registration and open a brokerage firm account.
That’s it! The beginning is actually easy. When you join right here, you obtain the choice of depositing at the very least $100 and also obtaining a free stock worth up to $1,000.
The Robinhood trading app might be an excellent match for somebody that intends to experiment with trading as a way to make some money.
Investing is an important part of becoming recession proof, to learn more about investing beyond the Robinhood app check out our complete beginner guide to investing here and our recommended investing books here.
While trading stocks online, it is important to practice self-disciplined and only trade stocks that show a high chance of fast growth in the near future based on the stock’s performance over the last several months. By eliminating losses rapidly on the losing trades, you will continually make money trading stocks.
You can get going with stock trading for as little as $100. Why not give it a try?