But I often like to use Yahoo Stocks or another tool to look at prices for 5 years or longer, as well as to research dividend history. Robinhood only gives 1 year of stock history, which may be enough for some. #5: Don’t rely on it for researchĬurrently I’m using three apps to research stock history and prices: Robinhood, ClosingBell, and WikiWealth. And if you’re really intent of not letting a stock dip below a certain price, you can set up Robinhood to automatically sell it ( “stop loss” order) before it gets to that point. Set up some Google news alerts for yourself so you can stay aware of any major information involving the companies you hold stock in. You want to look at the big picture over time. So don’t fall prey to your fears and tap “sell” the moment your stock starts to fall. The way I look at it, it’s kind of like checking your weight every day: fluctuations are normal, so there’s no reason to get freaked out by small changes.Īlso, I know that studies have shown that the “pain” from a potential loss of money is twice as powerful as the “high” from a gain. Instead, I track the value of my portfolio monthly in a spreadsheet. Since I’m buying most of my stocks in the view that I’ll hold them for at least a year ( here’s why), I try not to look at their value daily. So until then, I’ll just set up a number of limit buys and whichever gets to its target price first will be executed first. But as far as I know, that’s not possible in Robinhood yet. Ideally, I’d like to set up some kind of simple, tiered queue where, for example: If I have more than $200 in cash AND Apple stock is $99 or less, then it’ll buy as many APPL shares as possible UNLESS Microsoft is less than $34/share, in which case it’ll buy Microsoft. Computers now do the majority of trades, cashing in on milliseconds, so being a sausage-fingered human is a major disadvantage. The dip in price may be a reaction to a domestic news event like the presidential election, or to global influences like the state of China’s economy, or just because it’s a rainy Tuesday: who the hell knows.Īlthough the response to news events has been shown to be minor (and more pronounced in reaction to positive news like stock earnings than to negative news) fluctuations can last as little as 40 seconds, so I will set up something automated to make sure I catch the price I want. We are in a volatile market right now, and there’s a good chance the stock I want may go even lower before the year’s out. When I see money sitting in my Robinhood account, I want to spend it right away because I don’t want it losing the potential interest it would be gaining if it were in, say, an IRA or other savings vehicle. #3: Don’t get impatientĮven though my “investment strategy” (ha ha) is basically to buy low, hold on, collect dividends, and eventually sell high, I still get impatient. So if there’s a stock you have your eye on, don’t even think of buying until you’ve amassed enough “buying power” (Robinhood’s term for available cash) in your account. Unless you have Robinhood Instant, it’ll take about 3 days for your money to transfer from your bank account to the Robinhood app. But darn it, you forgot to add funds, so the opportunity passes you by. You may see a great stock you want to buy RIGHT NOW.
#2: Don’t forget to add money well in advance Now, when you do a “Limit Order”, it means you have less money in the kitty (Robinhood calls this “Buying Power”) for buying other stocks. A limit order means that you can tell the app, “Hey, I want to buy Apple stock, but only if it’s $95 or less.” The app will earmark funds for this, and automatically execute the buy when the stock price reaches $95 or less. For myself, I find the “Limit Order” most useful. The different kinds of “orders” are: Limit Order, Stop Limit Order, Stop Loss, and Limit Order. To access the other ways to buy a stock, you tap on the stock you want, you can then tap “Buy”, and then “Order Types” in the upper right-hand corner. But this is not the only way to buy a stock, and definitely not the best. When you buy in real-time, you often don’t get the exact price you want because of delay between when you enter the order and when it processes. So I didn’t realize that even Robinhood offers different ways to buy stocks. When I first started using Robinhood, it was my first time buy ing stocks directly, ever.
0 kommentar(er)
