How I Made Money Trading on Robinhood

By W.G. Davis

Whether you’re saving for retirement, looking to grow your savings, or just want to learn more about the stock market, investing your money doesn’t have to be a scary process.

I learned that with a few simple strategies that I could invest in a financially responsible way that will benefit me over time.

And I want to share my seven steps on how I made money using the Robinhood trading app.

• Language: English
• Publisher: W.G. Davis
• Release date: Feb 23, 2021
• ISBN: 9781005607814

Book preview

Introduction

Before we go into this book I want to stress that this book is not intended as investment advice. I am not sharing with you what stocks to purchase. That decision is 100% up to you.

All I am doing is sharing with you what I went through as a new trader on the stock market and what I had to learn to be successful.

I cannot guarantee that any of these strategies will work as the market and the financial world, in general, can change without any foreseeable warning.

I hope that you can take the information that I learned and be successful at whatever your financial goal may be.

None of the stocks mentioned in this book are paying me to share their stock information.

What Is Stock?

A stock is a type of investment that represents an ownership share in a particular company. For many companies, issuing stock is a way to raise money to grow their business. 

Smart investors buy stocks that they think will go up in value over time.

You need to wrap your mind around the fact that stocks, even if it’s only 1 single share, is an investment.

When you purchase a company's stock, you're purchasing a small piece of that company; either 1 or 1000 your portion is called a share. And when you own stock in a company, no matter how small or large, you are called a shareholder because you share in the company's profits. But unfortunately, you also share in the company’s losses if you own the shares when they take a downward turn in value.

A smart investor will purchase stocks in companies they think will go up in value.

If company value goes up, the company's stock increases in value as well. Sounds pretty simple, doesn’t it?

Once the stock price goes up you will have the option to sell it for a profit or hold on to the stock with hopes for a long-term investment.

That is the very basic definition of what stocks are.

Now I will share with you the five steps that I had to learn and understand when I personally ventured into the stock market.

The six things that I needed to know right at the start is:

How much am I willing to invest?

Where do I find the stocks?

Is it a short-term or long-term stock?

When do I buy and sell a stock?

Understanding Bull vs. Bear markets Crash vs. Correction

And we will cover each of these in the following pages.

STEP ONE

How much am I willing to invest?

Now people will tell you that you have to be an expert in the charts, the company finances, and even their projected financials to even consider a stock for buying.

And all I have to say to that is, BULLSHIT!

The first quarter of