Category: Stock Market

Making money with stocks

by Justin


Making money in the stock market

Many people invest in the stock market. Some know what they are doing, others haven’t a clue. But, why do people put money in stocks or even perceive stocks to be something good to put your money into? Well, there is a great amount of wealth to be made with the stock market, but only if you do it correctly. The. Good news is there are numerous ways to go about it depending on your goals. So, what are some of the best ways of making money with stocks? And which one is for you?

  • Investing for retirement. This is the most traditional and hands off way to invest in stocks. Basically, you will invest your money and hope that by the time you retire, you shares will be worth more along side the dividends and capital gains you earn through the process. This is the method for those wanting very minimal time investment in the process.
  • trading stocks. For those who want a little more hands on, they may want to buy a stock in hopes of selling it in a shorter period of time for a sizeable gain. It may be anywhere from hours between trades and up to a few years. Generally long term is over a year and short term is under a year. There are day traders, swing traders,( other traders,). The only difference is the amount of time they hold their stock. The shorter amount of time one holds their stock, the more knowledge is required to be successful.
  • Note that the difference between trading and investing at its core is that traders want the up front capital gain, even though it is taxed higher and the investor wants dividends for the long term.
  • Options. This is a whole different process in itself. The concept of options is described fully in its definition () options trading has become popular because of its ease into interest and potential gains. With options, you can back out without losing your total investment. Also, you have the ability to make money in bullish or bearish markets. As long as the trend does what you are expecting, you can earn money. Options are held for short periods of time and then closed with either a gain or loss.

These are the three most basic ways to invest in stocks, each has much deeper meanings and further study to fully understand. Looking for consistent income with potential growth with minimal investment. Go for the long term investment. Making money through flipping and potentially dividend, trade stocks. If you want to make the most money upfront by trading, go for options trading. This will give you the largest gain and reduce your loss. Remember, when you do taxes, you pay more on trades you make than dividends you earn.

There are several ways to get started be it 401k, ira, Roth IRA, mutual funds, index funds, different trading platforms etc. see these in the stock investment pages.

Robinhood App

by Justin


Robbinhood App

This post concerns trading stocks on a virtual platform. Specifically, it discusses the free Robin Hood App. What is so unique about this app is that for most investments concerning stock, the trades are absolutely free. What this means is for each trade, you don’t have to pay a fee of $5 -$10 for making the trade. If you buy for 10$ and sell for $12, you have gained $2. Its great for newbies and even experienced traders to get their portfolio rolling. Here, I will outline some of the key features and share my experiences with you.

  1. Free. I can’t say this enough. The app is free, and the trades are free. If you’re trading basic stocks like Ford, Amazon, PayPal etc. and you’re not using the Robinhood app, you need to switch now!!  For foreign accounts there are fees and if you do wires, there are fees. Other than that, this app is totally free.
  2. Interface: The interface is very user friendly. Just download the app, set up your account and your good to go. With the Robinhood app, you can search for the stock you want, see past performance, and real time stock price. It will give you the percent change, the changes for up to the past 5 years and display that in a chart, it will also show your holdings. If you want to do it on a computer, you have to sign up until they make it accessible. Currently, it is only for phones.
  3. Free Stocks: If you refer friends, you can get a free stock and they get a free stock. If you don’t know anyone to refer you, you can use this like and get a free stock. This will let you pick one of three question mark papers. When you pick one, scratch it to reveal your stock. Them you are the proud owner of that stock clear and free. You can sell it 3 days after you receive it.
  4. Smart watch compatible: This app is compatible with Apple Watch and other smart watch devices. I use this myself and it is very handy. Instead of pulling out my phone, I can look at my watch to see how my portfolio is doing. It will also give you the run down of current stock prices and changes.

Image result for robin hood app

To download this app, go to your phones App Store and type in Robinhood. It should be the app with a feather. It looks like the one above. Alternatively, you can click this link and receive a free stock for being referred.

I wanted to share with you my first experience with the Robinhood app. (Please note, the results are not typical on a daily basis). I placed a trade for one share of twitter around 2pm for $26.36 a share. This was the day before earnings. The following day around 11, I sold the share for $31.74. This was about a 20% gain in just under a 24 hour period. Sure, the amount wasn’t much, but the principle is, how long would it take for your bank to pay you 20%? Let’s say that you only made 2 or 3% it is still better than savings accounts. Why is this important? Because with the Robinhood app, I made the trade for free. Had I used another brokerage for one trade like that, it would have cost me at least $5, therefore only yielding me a dollar (about 4%). Even with a substantial gain like 20%, fees would eat up your profit on other platforms. This gives you the luxury to earn money on stocks in small amounts and for low costs. This truly levels the field and allows anyone to begin investing in the stock market.