In today’s world where there are literally apps for everything, its not surprising that there are also a vast number of investing apps available to anyone’s smartphone in a matter of a few clicks.
This is great news for both stock wizards who need to day trade on the go, as well as an introductory opportunity for nuanced investors to get their feet wet in the world stocks, ETF’s and even cryptocurrencies!
The popular trading platforms such as E-Trade and TD Ameritrade now compete with a newbie platform called Robinhood. Robinhood was created as a mobile app first before adding a traditional website model. That in itself speaks to its bend towards appealing to a millennial audience.
But you don’t have to be a millennial to appreciate the ease at which Robinhood functions.
Its platform is great for beginners for one main reason: there are no fees to trade.
That’s right, no fees. This is especially appealing if you are just starting with investing and don’t have a lot of money to use in the first place, or are fearful of a potential loss of money, and the thought of adding an additional charge on a trade just adds to the anxiety involved. This is something that usually deters new investors from getting started in the stock market to being with.
As an added bonus, Robinhood even provides new investors with a free stock (affiliate) just for using its platform. This is a fun way to start tracking a stock, reading up about it and watching how it does in the market without having to spend any of your own money out of pocket.
Now some of you may be thinking: How Successful Can Someone Be Using The Robinhood App?
The truth is, that the sky is the limit with investing. During my research for this article I came across a great article on the blog, fitnacial$, where a husband and wife had direct success trading specifically using the Robinhood app.
One of their strategies included picking stocks that were valued at no more than $20 per share, which also tend to be more volatile, but can have a better payoff if you pick the precise time to buy and sell.
Next they tracked those investments through the platform Stockcharts.com which does have a monthly fee involved, about $15 to start. But with tracking their stocks they were able to pick the most optimal time to buy and sell their stocks.
Now, for those just starting out this can feel risky. I suggest playing around in the Robinhood app for at least a month to get a feel of what you are doing and how comfortable you feel with trading.
Not everyone needs to be a day trader to make money.
Just like you may invest in a 401K at work, which is most likely a well diversified portfolio aimed at a steady gain over time, you can also invest in the stock market this way with the Robinhood app.
It doesn’t have to be constant buying and selling. Instead, for a longer term investing strategy you should aim to invest in mostly ETF’s (exchange-traded-fund), which are various indexes with a wide mix of stocks, bonds and commodities. Basically when you buy shares of ETF’s you are buying a small portfolio of assets, and investing in this overtime is more stable.
Another safer bet for investing long term should be in stocks that have held their value over an extensive amount of time, such as Apple, for example. When you look at its five year history for reference, you can see some gains and losses but year after year it is always netting in the positive.
Now of course, nothing is for certain. This is the stock market after-all. But it can be much more of a well thought out investment than a risky gamble if you do your homework. The more you read up about current events and keep tabs on the economy the more insight you can gain into investments.
Some good resources for market information include:
If your looking for other ways to cushion your finances, consider starting a blog (I give you step-by-step tips here), start freelance writing, or simply start slashing your spending by making some cuts to daily spending habits.