@Susan L. wrote:
The big difference with Robinhood app is it allows customers to trade with no transaction fees. That has attracted lots of new, small investors/players to the financial markets, who no longer have to pay $4.95 to $9.95 per trade.
A lot of the major brokerages went to free trading in 2019. Vanguard held out for a while and still kept it's $7.00 fees, but finally gave in too. I have seen RHers mention the less intimidating and user-friendly interface of RH for their use of it. It does make things very easy, intuitive, and "fun."
I still would never use RH myself, as I worry about security on the app.
@ wrote:
BTW, without fee-free companies like RobinHood, the Gamestop action probably would not have happened.
(Actually, the action also needed help from reddit boards to spread the information, and covid-bored people isolated at home with a few dollars in their e-pockets...)
"Stimmy" checks + quarantine led to a lot of kids trading stocks in 2020. It's crazy how young they were...10-13 year olds. Although, I actually think it's great if they're learning something.
Lauren Templeton (great niece of Sir John Templeton and a hedge fund manager) has always recommended people take $500 they can afford to lose and just buy stock in a company they like. She says forget about valuation and buy it at whatever price it's currently selling if you like. Then, she says follow the stock's price movement along with any news that comes out about it. Ask yourself why the price went up or down...what factors matter? She says you can learn more doing that than lots of time spent studying books. You'll be more motivated with real skin in the game. And, it also gives you first-hand experience of the emotions involved that no amount of book study can prepare you for.
If people can afford it, I second Lauren's advice. It's a great way to learn.
Edited 1 time(s). Last edit at 02/07/2021 11:19AM by shoptastic.