So I normally don’t promote a lot of stuff. But this app is actually really impressed me. Now I see a ton of affiliate marketing for all these different useless apps that you don’t need. And that’s the reason I started this blog was that I was tired of all the stuff being promoted to make a quick buck that is of no use to you. So know when I promote something it’s actually worth it. P.S. Below is a link to get $10 free to start trading.
So after that long intro. Let’s talk about Robinhood. No not the arrow-wielding vigilante. The app. Although the app’s principle is the same. to take money from the fat cats of wall street and put it into your pockets.
Now here’s the thing. There are a lot of apps out there where you can invest for free. I tried all of them but wasn’t impressed with the simple features. There wasn’t a lot of “options” it was very black and white Trading.
Robinhood has been guilty of this until 2018. Here’s the game changer. Robinhood is launching Options Trading!
Now as an investor I’m ecstatic. Here’s the thing. A lot of these so-called “financial experts” (who are just there to promote apps you don’t need) are not as excited. Here’s why. Options trading can get really complicated and not many people truly understand it. Especially when we start getting into different derivative trading. So here is a simple breakdown of why options are literally the best thing ever.
Up to this point, you buy the stock on the app and hope the price goes up. Then you sell the stock and make a profit. Ok, but what if I told you could make money when the price goes down? This is called short selling. If you want the long explanation there are plenty of explanations on google but the simple version is you are betting that the price of the stock will go down and if it does. You gain that money in profit. Cool Right! Pessimists rejoice! This is especially cool because large percentages of business fail.
I don’t know if Robinhood will do this in 2018 but there is also Put and Call options. Which means agreeing to buy a stock at a set price in the future. A simple example would be to bet that the stock will go up by a set date. If the price goes up you can cash in on the profit. If it doesn’t you’re just out the fee for the option. These options are less risky.
For the crazy smart readers. A derivative is a combination of different options to mitigate risk and is worth looking into if that interests you.
Robinhood is a great way to learn how to invest. And offers the most functions all commission-free. (keep in mind they make their money off stock price spreads) But is way cheaper than paying 8 bucks a trade. Because especially when you are learning you make a lot of trades getting in and out of positions.
So that’s it there is Robinhood. If you have any questions or comments email or comment on this article
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