Finally feeling ready to make your first public stock trade? Maybe you are brand new to stock trading and just read our previous blog on how to get started, or perhaps you carry an advanced set of skills. No matter your status in the trade (pun intended) this blog contains access to free trading software to save you costs and grow your returns in the long-run!
Many readers most likely are contributing to a 401k and using a retirement calculator to map out their plan. For those who aim to further diversify their portfolio, this blog is for you. The year is 2020 and it has never been so easy to earn money through online platforms. If you are trying to create passive income and long-term returns through public markets, then this blog is DEFINITELY for you. Allow us to introduce the most efficient, cost-effective, seamless, and user friendly stock trading platform on the market today, Robinhood.
Robinhood is a pioneer of commission-free investing, a feature that many large trading platforms are desperately trying to adopt due to its quick up rise in popularity. The platform’s strategy surrounds a ‘no frills’ user experience as it takes less than 5 minutes to start a free account, link your payment information, and execute your first trade. The company I created in October of 2019, IHG Management, contains a diverse portfolio of bond ETFs all traded with $0 broker fees! It’s excellent because this saves our company a sizable portion of money in broker fees as the calendars turn to new years.
Signing up is easy and it takes less than 5 minutes. Below is the screen you will see when you click ‘sign up’ in the upper right section of the page. As pictured below the tabs within the sign up process are a simple 5 step process. Enter your basic personal information and the bank account(s) you wish to link to the Robinhood account. This will take you to the home screen where your portfolio performance graph is placed along with the navigation tabs and portfolio holdings side bar on both the mobile app and desktop.
Now, what does your daily portfolio layout and task list look like? You’ve gotten started with Robinhood and executed your first set of free trades, what next? It’s time to be a responsible investor. It’s time to implement your safe trading strategy focused on long-term returns with dividends along the way. This starts with closely monitoring your portfolio holdings by assessing the metrics and performance indicators of each stock and ETF. Look at this below example of a Stock/ETF summary for FLRN:
Below the ‘About’ section is the key stock information most notably the 52 week high – 52 week low and the dividend yield. Certain stocks and ETFs contain more information such as ‘earnings per share’ and ‘beta’. Regardless, the basic information needed to perform stock valuation for beginners is present and allows investors to build a research base.
Our company really enjoys the seamless navigation tabs including the most important and easy access functions of trading stocks. This includes a symbol search, portfolio watchlist, cash, messages, and account tabs.
Robinhood offers advanced financial instruments in ‘options trading’. The availability of options trading access illustrates the platform’s superior business model and allows advanced traders to benefit from the platform. In addition to options trading, Robinhood offers an upgraded platform called Robinhood Gold, featuring advanced insights and a greater access to relevant news updates within financial markets.
Having started out my investment trading career with a complex trading platform which charged trading fees of around $4, I immediately saw the benefits to my portfolio balance with a free Robinhood account. The user friendly interface and commission-free trades allowed us to maximize our returns and save big in the long run. I find the insights and stock summaries include the most important tips that any intermediate or advanced trader requires to formulate a foundation for research and valuation.
A big plus with the mobile app are the notifications I receive on a daily basis when key movers hit their 52 week high or 52 week low. The trading platform has an excellent color scheme and layout which is easy to read. I recommend it for any one who is new to trading stocks and wants to get a feel for their strategy through an easy to use platform. Starting out on difficult platforms if you have no educational background in financial markets is risky, and it lost me a $300 in my original options house (now E-Trade) account. Get started with Robinhood and become a master of the stock market.
Managing Partner @ IHG Property Management